EQUINOR ASA [EQNR] Filings

20-F 1 eqnr20231231.htm EQUINOR ANNUAL REPORT ON FORM 20-F 2023 eqnr20231231

Equinor 2023 Annual Report on Form 20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM

20-F

(Mark One)

☐

REGISTRATION STATEMENT

PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF

1934

☒

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended

December 31, 2023

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

☐

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

Commission file number

1-15200

Equinor ASA

(Exact Name of Registrant as Specified in Its Charter)

N/A

(Translation of Registrant’s Name Into English)

Norway

(Jurisdiction of Incorporation or Organization)

Forusbeen 50

N-4035

Stavanger

Norway

(Address of Principal Executive Offices)

Torgrim Reitan

Chief Financial Officer

Equinor ASA

Forusbeen 50

N-4035

Stavanger

Norway

Telephone No.: 011-

5199-0000

Fax No.: 011-47-

5199-0050

(Name, Telephone,

E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange On Which

Registered

American Depositary Shares

EQNR

New York Stock Exchange

Ordinary shares, nominal value of NOK

2.50

each

EQNR

New York Stock Exchange

*Listed, not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the

requirements of the Securities and Exchange Commission

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Equinor 2023 Annual Report on Form 20-F

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the

period covered by the annual report.

Ordinary shares of NOK 2.50 each

2,944,733,144

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☒

Yes

☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to

Section 13 or 15(d) of the Securities Exchange Act of 1934.

☐

Yes

☒

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934 from their obligations under those Sections.

☒

Yes

☐

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit and post such files)

☒

Yes

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,

or an

emerging growth company. See the definitions of “large accelerated filer,”

“accelerated filer,” and “emerging growth company”

in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Emerging growth company

☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP,

indicate by check mark if

the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting

standards† provided pursuant to Section 13(a) of the Exchange Act

☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards

Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 762(b))

by the registered public accounting firm that prepared or issued its audit report.

☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements.

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive

based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to

§240.10D-1(b).

☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing:

U.S. GAAP

☐

International Financial Reporting Standards

as issued

by the International Accounting Standards Board

☒

Other

☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the

registrant has elected to follow.

Item 17

☐

Item 18

☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2

of the Exchange Act).

☐

Yes

☒

Equinor 2023 Annual Report on Form 20-F

TABLE OF CONTENTS

INTRODUCTION

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FORWARD-LOOKING STATEMENTS

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Directors and Senior Management

Advisers

Auditors

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Offer Statistics

Method and Expected Timetable

ITEM 3.

KEY INFORMATION

[Reserved]

Capitalization and Indebtedness

Reason for the Offer and Use of Proceeds

Risk Factors

ITEM 4.

INFORMATION ON THE COMPANY

History and Development of the Company

Business Overview

Organizational Structure

Property, Plant and Equipment

ITEM 4A.

UNRESOLVED STAFF COMMENTS

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Operating Results

Liquidity and capital resources

Research and development, Patents and Licences, etc.

Trend information

Critical Accounting Estimates

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Directors and Senior Management

Compensation

Board Practices

Employees

Share Ownership

Disclosure of a registrant’s action to recover erroneously awarded compensation.

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Major shareholders

Related Party Transactions

Interests of Experts and Counsel

ITEM 8.

FINANCIAL INFORMATION

Consolidated Statements and Other Financial Information

Significant Changes

ITEM 9.

THE OFFER AND LISTING

Offer and Listing Details

Plan of Distribution

Markets

Selling Shareholders

Dilution

Expenses of the Issue

ITEM 10. ADDITIONAL INFORMATION

Share Capital

Memorandum and Articles of Association

Material Contracts

Exchange controls

Equinor 2023 Annual Report on Form 20-F

Taxation

Dividends and Paying Agents

Statement by Experts

Documents on Display

Subsidiary Information

Annual Report to Security Holders.

ITEM 11. QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Debt Securities

Warrants and Rights

Other Securities

American Depositary Shares

PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 15. CONTROLS AND PROCEDURES

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

ITEM 16B. CODE OF ETHICS

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER

AND AFFILIATED PURCHASERS

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

ITEM 16G. CORPORATE GOVERNANCE

ITEM 16H. MINE SAFETY DISCLOSURE

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 16J. INSIDER TRADING POLICIES

ITEM 16K. CYBERSECURITY

PART III

ITEM 17. FINANCIAL STATEMENTS

ITEM 18. FINANCIAL STATEMENTS

ITEM 19. EXHIBITS

CONSOLIDATED FINANCIAL STATEMENTS

Equinor 2023 Annual Report on Form 20-F

INTRODUCTION

Unless otherwise indicated, all references herein to “we”, “our”, the “company”, the “group” or

“Equinor” are references to Equinor ASA

and its consolidated subsidiaries.

This document is our annual report on Form 20-F for the year ended 31 December 2023 (“

2023 Form 20-F

”). Reference is made to

our Norwegian Integrated Annual Report for 2023 which is attached hereto as Exhibit 15.4

(the “

2023 Annual Report

”), our 2023 Oil

and Gas Reserves Report which is attached hereto as exhibit 15.5 (the “

2023 Oil and Gas Reserves Report

”), our 2023

Remuneration Report which is attached hereto as exhibit 15.6 (the

“2023 Remuneration Report

”), and our 2023 Board of

Governance Report which is attached hereto as exhibit 15.7 (the “

2023 Corporate Governance Report

”). Only (i) the information

included in this 2023 Form 20-F, (ii) the information in the 2023 Annual Report, the 2023 Oil and Gas Reserves Report, the 2023

Remuneration Report and the 2023 Corporate Governance Report that is incorporated by reference

in this 2023 Form 20-F (excluding

any page references incorporated in the incorporated material unless specifically noted otherwise),

and (iii) the other exhibits to this

2023 Form 20-F shall be deemed to be filed with the Securities and Exchange Commission (“

SEC

”) for any purpose, including

incorporation by reference into the Registration Statement on Form F-3 filed on May 4, 2023 (File No.

333-271647), and Registration

Statement on Form S-8 filed on February 9, 2022 (File No. 333-262601) and any other documents filed

by us pursuant to the

Securities Act of 1933, as amended, which purport to incorporate by reference the 2023 Form

20-F.

Unless otherwise indicated,

references to major headings include all information under such major headings, including subheadings, unless

such reference is a

reference to a subheading, in which case such reference includes only the information

contained under such subheading. Any other

information shall not be deemed to be so incorporated by reference.

In addition to the information set out below, the information set forth under the heading “Other definitions and abbreviations” in Section

5.7 of Chapter 5 on pages 306 – 309 of the 2023 Annual Report is incorporated herein by

reference.

The 2023 Annual Report contains references to our website (https://www

equinor.com).

Information on our website or any other

website referenced in the 2023 Annual Report is not incorporated into this document and should

not be considered part of this

document.

The SEC maintains an Internet website that contains reports and other information regarding

issuers that file electronically with the

SEC. Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov.

The information about Equinor’s competitive position in this 2023 Form 20-F (including

the information in the 2023 Annual Report that

is incorporated by reference herein) is based on several sources such as investment analyst reports,

independent market studies, and

internal assessments of market share based on publicly available information about the financial

results and performance of market

players.

Equinor 2023 Annual Report on Form 20-F

USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Since 2007, Equinor has been preparing its audited consolidated financial statements in accordance

with International Financial

Reporting Standards (IFRS® Accounting Standards) as adopted by the European Union (EU)

and as issued by the International

Accounting Standards Board. IFRS Accounting Standards have been applied consistently to

all periods in our audited consolidated

financial statements as of 31 December 2023 and 2022, and for the three years ended 31 December

2023 included in this 2023 Form

20-F (the “Consolidated financial statements”).

Non-GAAP financial measures are defined as numerical measures that either exclude or include

amounts that are not excluded or

included in the comparable measures calculated and presented in accordance with generally accepted

accounting principles: (i.e,

IFRS Accounting Standards in the case of Equinor). The following financial measures included

in this 2023 Form 20-F may be

considered non-GAAP financial measures:

Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities

and Net debt to capital

employed ratio adjusted

Return on average capital employed (ROACE)

Organic capital expenditures

Gross capital expenditure (gross capex)

Cash flows from operations after taxes paid (CFFO after taxes paid)

Net cash flow (previously named Free cash flow)

Adjusted earnings and adjusted earnings after tax

For more information on the calculation and reconciliation of these non-GAAP financial measures,

see “Item 5. Operating and

Financial Review and Prospects—B. Liquidity and capital resources—Use and reconciliation of non-GAAP

financial measures.”

Equinor 2023 Annual Report on Form 20-F

FORWARD-LOOKING STATEMENTS

This 2023 Form 20-F F (including information incorporated

herein from the 2023 Integrated Annual Report)

contains certain forward-looking

statements that involve risks and uncertainties, in

particular in the sections incorporated by reference in

Item 4 of this 2023 Form 20-F. In

some cases, we use words such as "aim", "ambition",

"anticipate", "believe", "continue", “commit”, "could",

"estimate", "expect", "intend",

"likely", "objective", "outlook", "may", "plan", "schedule",

"seek", "should", "strategy", "target", "will", "goal" and

similar expressions to identify

forward-looking statements. All statements other than

statements of historical fact, including: the commitment

to develop as a broad energy

company and diversify our energy mix; the ambition

to be a leading company in the energy

transition; ambition to reach net zero by 2050

and

expectations regarding progress on our energy

transition plan; our ambitions regarding reduction

in operated emissions and net carbon

intensity and allocation of gross capex* to renewables

and low carbon solutions; our ambitions and

expectations regarding decarbonisation;

our ambition to maintain value in oil and gas,

focus on high value growth in renewables and

contribute to maturing CCS and hydrogen

markets; ambition to attain a leadership position

in the European CCS market and expectations regarding

market share for storage and

hydrogen; aims, expectations and plans for renewables production

capacity and power generation, investments in

renewables and low-carbon

solutions and the balance between oil and gas and

renewables production; our expectations with respect

to net carbon intensity, operated

emissions, carbon and methane intensity and flaring

reductions; our internal carbon price and other

financial metrics for investment decisions;

break-even considerations and targets; robustness of

our portfolio; aims and expectations regarding

Equinor’s resilience across different

climate scenarios; future levels of, and expected value

creation from, oil and gas production, scale and

composition of the oil and gas portfolio,

and development of CCS and hydrogen businesses;

plans to develop fields; our intention to optimise

and mature our portfolio; future

worldwide economic trends, market outlook and

future economic projections and assumptions, including

commodity price assumptions;

expectations and plans regarding capital expenditures;

future financial performance, including earnings,

cash flow, liquidity and return on

average capital employed (ROACE)*; the ambition

to grow cash flow and returns; expectations regarding

cash flow and returns from our oil

and gas portfolio and renewables and low carbon

solutions portfolio; organic capital expenditures for 2024;

expectations and estimates

regarding production and execution of projects;

the ambition to keep unit of production cost in

the top quartile of our peer group; scheduled

maintenance activity and the effects thereof on equity production;

business strategy and competitive position; sales,

trading and market

strategies; research and development initiatives and

strategy, including ambitions regarding allocation of research and development

capital

towards renewables and low carbon-solutions; expectations

related to production levels, unit production cost,

investments, exploration

activities, discoveries and development in connection

with our ongoing transactions and projects;

our ambitions, expectations and plans

regarding diversity and inclusion, employee training

and supporting a just energy transition; plans

and expectations regarding completion and

results of acquisitions, disposals and other contractual

arrangements and delivery commitments; plans,

ambitions and expectations regarding

recovery factors and levels, future margins and future

levels or development of capacity, reserves or resources; planned turnarounds and

other maintenance activity; expectations regarding

growth in oil and gas, , including for volumes lifted and

sold to equal entitlement production,

and renewable power production; estimates related

to production and development, forecasts, reporting

levels and dates; operational

expectations, estimates, schedules and costs; expectations

relating to licences and leases; oil, gas, alternative

fuel and energy prices,

volatility, supply and demand; plans and expectations regarding processes

related to human rights laws, corporate

structure and

organizational policies; digitization, technological innovation,

implementation, position and expectations;

expectations regarding role and

composition of the board and our remuneration policies;

our goal of safe and efficient operations; effectiveness

of our internal policies and

plans; our ability to manage our risk exposure,

our liquidity levels and management of liquidity

reserves; future credit ratings; estimated or

future liabilities, obligations or expenses; expected

impact of currency and interest rate fluctuations;

projected outcome, impact or timing of

HSE regulations; HSE goals and objectives of

management for future operations; our ambitions

and plans regarding biodiversity (including

our

aim to develop a net-positive impact approach

for projects) and value creation for society; expectations

related to regulatory trends; impact of

PSA effects; projected impact or timing of administrative

or governmental rules, standards, decisions,

standards or laws (including taxation

laws); projected impact of legal claims against us;

plans for capital distribution, share buy-backs and

amounts and timing of dividends are

forward-looking statements.

You should not place undue reliance on these forward-looking statements. Our actual results

could differ materially from those anticipated in

the forward-looking statements for many reasons, including

the risks factors incorporated in Item 3.D of this 2023

Form 20-

Forward-looking statements are not guarantees of

future performance. They reflect current views

about future events, are based on

management’s current expectations and assumptions and are,

by their nature, subject to significant risks and

uncertainties because they

relate to events and depend on circumstances

that will occur in the future. There are a number

of factors that could cause actual results

and

developments to differ materially from those expressed or

implied by these forward-looking statements,

including levels of industry product

supply, demand and pricing, in particular in light of significant oil price

volatility; unfavourable macroeconomic conditions and

inflationary

pressures; exchange rate and interest rate fluctuations;

levels and calculations of reserves and material

differences from reserves estimates;

regulatory stability and access to resources, including

attractive low carbon opportunities; the effects of climate

change and changes in

stakeholder sentiment and regulatory requirements

regarding climate change; changes in market

demand and supply for renewables; inability

to meet strategic objectives; the development and use

of new technology; social and/or political instability, including as a result

of Russia’s

invasion of Ukraine and the conflict in the

Middle East; failure to prevent or manage digital

and cyber disruptions to our information and

operational technology systems and those of third parties

on which we rely; operational problems, including

cost inflation in capital and

operational expenditures; unsuccessful drilling; availability

of adequate infrastructure at commercially viable

prices; the actions of field partners

and other third-parties; reputational damage; the actions

of competitors; the actions of the Norwegian

state as majority shareholder and

exercise of ownership by the Norwegian state;

changes or uncertainty in or non-compliance

with laws and governmental regulations; adverse

changes in tax regimes; the political and economic

policies of Norway and other oil-producing countries;

regulations on hydraulic fracturing

Equinor 2023 Annual Report on Form 20-F

and low-carbon value chains; liquidity, interest rate, equity and credit risks; risk

of losses relating to trading and commercial

supply activities;

an inability to attract and retain personnel; ineffectiveness

of crisis management systems; inadequate insurance

coverage; health, safety and

environmental risks; physical security risks to personnel,

assets, infrastructure and operations from hostile

or malicious acts; failure to meet

our ethical and social standards; non-compliance with

international trade sanctions; and other factors discussed

elsewhere in this 2023 Form

20-F.

The achievement of Equinor’s climate ambitions

depends, in part, on broader societal shifts in

consumer demands and technological

advancements, each of which are beyond Equinor’s

control. Should society’s demands and technological innovation

not shift in parallel with

Equinor’s pursuit of its energy transition plan,

Equinor’s ability to meet its climate ambitions

will be impaired. The calculation of Equinor’s

net

carbon intensity presented in this report includes an

estimate of emissions from the use of sold products

(GHG protocol category 11) as a

means to more accurately evaluate the emission lifecycle

of what we produce to respond to the energy

transition and potential business

opportunities arising from shifting consumer demands.

Including these emissions in the calculations should

in no way be construed as an

acceptance by Equinor of responsibility for the

emissions caused by such use.

The reference to any scenario in this report, including

any potential net-zero scenarios, does not imply

Equinor views any particular scenario

as likely to occur. Third-party scenarios discussed in this report reflect

the modeling assumptions and outputs of their respective

authors, not

Equinor, and their use by Equinor is not an endorsement by Equinor

of their underlying assumptions, likelihood or probability. Investment

decisions are made on the basis of Equinor’s

separate planning process. Any use of the modeling of

a third-party organization within this

report does not constitute or imply an endorsement

by Equinor of any or all of the positions or

activities of such organization.

Although we believe that the expectations reflected

in the forward-looking statements are reasonable,

we cannot assure you that our future

results, level of activity, performance or achievements will meet these expectations.

Moreover, neither we nor any other person assumes

responsibility for the accuracy and completeness

of the forward-looking statements. Any forward-looking

statement speaks only as of the date

on which such statement is made, and, except as

required by applicable law, we undertake no obligation to update

any of these statements

after the date of this 2023 Form 20-F, either to make them conform to actual results or changes

in our expectations.

Equinor 2023 Annual Report on Form 20-F

Part I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Directors and Senior Management

Not applicable.

Advisers

Not applicable.

Auditors

Not applicable.

ITEM 2. OFFER STATISTICS

AND EXPECTED TIMETABLE

Offer statistics

Not applicable.

Method and Expected Timetable

Not applicable.

ITEM 3. KEY INFORMATION

[Reserved]

Capitalization and Indebtedness

Not applicable.

Reason for the Offer and Use of Proceeds

Not applicable.

Risk Factors

The information set forth under the heading “

Risk Factors

” in section 5.2 of chapter 5 on pages 264– 270 of the 2023 Annual

Report is incorporated herein by reference.

ITEM 4. INFORMATION ON THE COMPANY

History and Development of the Company

Equinor ASA was incorporated on 18 September 1972, is a public limited liability company

organised under the laws of Norway

and is subject to the provisions of the Norwegian Public Limited Liability Companies Act. Equinor’s

head office is located at Forusbeen

50, 4035 Stavanger, Norway. The telephone number of its principal place of business is +47-5199-00 00.

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

Equinor 2023 Annual Report on Form 20-F

●

Progress on our Energy transition plan in 2023 on pages 20 – 23;

●

Our History in Section 1.2 of Chapter 1 on page 11;

●

Investments in Section 2.2 of Chapter 2 on page 98;

●

Key events in Section 3.1 of Chapter 3 on page 125;

●

The information in the fifth paragraph under the heading “Exploration & Production Norway” in Section

3.1 of

Chapter 3 on page 125;

●

Key events in Section 3.2 of Chapter 3 on page 131;

●

The information in the fifth paragraph and under the sub-headings “Brazil” and “UK” under the

heading “Exploration

& Production International in Section 3.2 of Chapter 3 on page 130;

●

Key events 2023 in Section 3.3 of Chapter 3 on page 138;

●

Strong project pipeline in Section 3.3 of Chapter 3 on page 137;

●

Key events in Section 3.4 of Chapter 3 on page 144;

●

Overview in Section 3.5 of Chapter 3 on page 149;

●

Key events in Section 3.5 of Chapter 3 on page 150; and

●

Overview in Section 3.6 of Chapter 3 on pages 153 – 154.

The information set forth in the third and fourth paragraphs of the section entitled “

Introduction

” of this 2023 Form 20-F is also

incorporated herein by reference. See also notes 5 Segments and 6 Acquisitions and

disposals to the Consolidated financial

statements.

Business Overview

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

●

Key figures for 2023 on page 5;

●

Key figures by segment on page 5;

●

We are Equinor in Section 1.1 of Chapter 1 on page 10;

●

Our Business in Section 1.3 of Chapter 1 on pages 12 – 14;

●

The world in which we operate in Section 1.4 of Chapter 1 on pages 15 – 16;

●

Our Strategy in Section 1.5 of Chapter 1 on pages 17 – 19;

●

The safety, sustainability,

and ethics committee (SSEC) in Section 1.9 of Chapter 1 on page 27;

●

Sustainability approach and Sustainability governance in Section 2.2 of Chapter 2 on pages 56

– 57;

●

Safe and secure operations,

excluding Major accident framework, in Section 2.2 of Chapter 2 on pages 62 – 69;

●

Management approach in Section 2.2 of Chapter 2 on pages 71 – 72;

●

Performance evaluation in Section 2.2 of Chapter 2 on page 76;

●

Management approach in Section 2.2 of Chapter 2 on page 78;

●

Performance evaluation in Section 2.2 of Chapter 2 on page 81;

●

Management approach in Section 2.2 of Chapter 2 on pages 82 – 84;

●

Performance evaluation in Section 2.2 of Chapter 2 on pages 88 – 89;

●

Portfolio composition under Management approach in Section 2.2 of Chapter 2 on pages 91 – 92;

●

Procurement and employment that enable growth and opportunities in Section 2.2 of Chapter 2

on page 103;

●

Performance evaluation in Section 2.2 of Chapter 2 on page 105;

●

Management approach in Section 2.2 of Chapter 2 on pages 106 – 107;

●

Performance evaluation in Section 2.2 of Chapter 2 on page 109;

●

Exploration & Production Norway in Section 3.1 of Chapter 3 on pages 124 – 129;

●

Exploration & Production International in Section 3.2 of Chapter 3 on pages 130 – 136;

●

Exploration & Production USA in Section 3.3 of Chapter 3 on pages 137 – 141;

●

Marketing, Midstream & Processing in Section 3.4 of Chapter 3 on pages 142 – 147

●

Renewables in Section 3.5 of Chapter 3 on pages 148 – 152; and

●

Other group in Section 3.6 of Chapter 3 on pages 153 – 155.

See also notes 5 Segments and 7 Total revenues and other income to the Consolidated financial statements.

The information about Equinor’s competitive position in the sections of the 2023 Annual

Report that are incorporated by

reference herein is based on several sources such as investment analyst reports, independent

market studies, and internal

assessments of market share based on publicly available information about the financial results

and performance of market players.

Applicable laws and regulations

Equinor operates in around 30 countries and is exposed and committed to compliance with numerous laws

and regulations

globally. The first graphic in Section 1.3 (‘Our Business’) on page 12 in Chapter 1 and the risks set forth under the heading ‘Policies

and legislation’ in Section 5.2 on page 267 of Chapter 5 of the 2023

Annual Report are also incorporated herein by reference.

Equinor 2023 Annual Report on Form 20-F

This section gives a general description on the legal and regulatory framework in the various

jurisdictions where Equinor operates and

in particular in the countries of Equinor’s core activities.

Regulatory framework for upstream oil and gas operations

Currently, Equinor is subject to two main regimes applicable to petroleum activities worldwide:

●

Corporate income tax regimes; and

●

Production sharing agreements (PSAs)

Equinor is also subject to a wide variety of laws and regulations concerning its products,

operations and activities, including

without limitations laws and regulations relating to health, safety and environmental (HSE). Relevant laws and

regulations include inter

alia jurisdiction specific laws and regulations, international regulations, conventions or treaties,

as well as EU directives and

regulations.

Concession regimes

Under a concession regime, companies are granted licences by the government to extract petroleum. This

is similar to the

Norwegian system described below. Typically,

the licences are offered to pre-qualified companies following bidding rounds. The

criteria for the evaluation of bidding offers under these regimes can be the level of offered signature bonus (bid

amount), minimum

exploration programme, and local content. In exchange for those commitments, the successful bidder(s) receive

a right to explore,

develop and produce petroleum within a specified geographical area for a limited period of time.

The terms of the licences are usually

not negotiable. The fiscal regime may entitle the relevant jurisdiction to royalties, profit

tax or special petroleum tax.

PSA regimes

PSAs are normally awarded to the contractor parties after bidding rounds announced by the

government. Main bid parameters

are a minimum exploration programme and signature bonuses, allocation of profit oil and, in some

cases, tax.

Under a PSA, the host government typically retains the right to the hydrocarbons in place.

The contractor receives a share of the

production for services performed. Normally, the contractor carries the exploration and development costs and risk prior to a

commercial discovery and is then entitled to recover those costs during the production phase. The remaining

share of the production -

the profit share, is split between the government and the contractor according to a mechanism set

out in the PSA. The contractor is

usually subject to income tax on its own share of the profit oil. Fiscal provisions in

a PSA are to a large extent negotiable and are

unique to each PSA.

Norway

Norway is not a member of the European Union (EU) but is a member of the European

Free Trade Association (EFTA). The EU

and the EFTA Member States have entered into the Agreement on the European Economic Area, referred to as the EEA Agreement,

which provides for the inclusion of EU legislation in the national law of the EFTA Member States (except Switzerland). Equinor’s

business activities are subject to both the EFTA Convention and EU laws and regulations adopted pursuant to the EEA Agreement.

The principal laws governing Equinor’s petroleum activities in Norway and on the NCS

are the Norwegian Petroleum Act of 29

November 1996 (the Petroleum Act) and the regulations issued thereunder, and the Norwegian Petroleum Taxation Act of 13 June

1975 (the Petroleum Taxation Act).

Under the Petroleum Act, the Norwegian Ministry of Petroleum and Energy (“MPE”) is responsible

for resource management and

for administering petroleum activities on the NCS. The main task of the MPE is to

ensure that petroleum activities are conducted in

accordance with the applicable legislation, the policies adopted by the Norwegian Parliament and relevant

decisions of the Norwegian

State.

The State’s role in relation to major policy issues in the petroleum sector can affect Equinor in two ways: first,

when the

Norwegian State acts in its capacity as majority owner of Equinor shares and, second, when

the Norwegian State acts in its capacity

as regulator:

●

The Norwegian State’s shareholding in Equinor is managed by the Ministry of Trade, Industry and Fisheries. The Ministry will

normally decide how the Norwegian State will vote on proposals submitted to general meetings

of the shareholders. However, in

certain exceptional cases, it may be necessary for the Norwegian State to seek approval

from the Storting before voting on a

certain proposal. This will normally be the case if Equinor issues additional shares and such

issuance would significantly dilute

the Norwegian State’s holding, or if such issuance would require a capital contribution from the Norwegian State in

excess of

government mandates. A vote by the Norwegian State against an Equinor proposal to issue

additional shares would prevent

Equinor from raising additional capital in this manner and could adversely affect Equinor’s ability

to pursue business

opportunities. The information regarding the Norwegian State’s ownership in the information set forth under the

heading “Major

Equinor 2023 Annual Report on Form 20-F

Shareholders” in Section 5.

1 of Chapter 5 and the risks set forth in “Ownership and action by the Norwegian State”

in Section 5.2

of Chapter 5 of the 2023 Annual Report are also incorporated herein by reference.

●

The Norwegian State exercises important regulatory powers over Equinor, as well as over other companies and corporations on

the NCS. As part of its business, Equinor or the partnerships to which Equinor is a party, frequently need to apply for licences

and other approvals from the Norwegian State. Although Equinor is majority-owned by the

Norwegian State, it does not receive

preferential treatment with respect to licences granted by or under any other regulatory rules enforced

by the Norwegian State.

The Petroleum Act sets out the principle that the Norwegian State is the owner of all

subsea petroleum on the NCS, that the

exclusive right to resource management is vested in the Norwegian State and that the

Norwegian State alone is authorised to award

licences for petroleum activities as well as determine their terms. Licensees are required to submit

a plan for development and

operation (PDO) to the MPE for approval. For fields of a certain size, the Storting has

to accept the PDO before it is formally approved

by the MPE. Equinor is dependent on the Norwegian State for approval of its NCS exploration

and development projects and its

applications for production rates for individual fields.

Production licences are the most important type of licence awarded under the Petroleum Act. A

production licence grants the

holder an exclusive right to explore for and produce petroleum within a specified geographical

area. The licensees become the

owners of the petroleum produced from the field covered by the licence. Production licences

are normally awarded for an initial

exploration period, which is typically six years, but which can be shorter. The maximum period is ten years. During this exploration

period, the licensees must meet a specified work obligation set out in the licence. If the licensees

fulfil the obligations set out in the

initial licence period, they are entitled to require that the licence be extended for

a period specified at the time when the licence is

awarded, typically 30 years.

The terms of the production licences are decided by the MPE. Production licences are

awarded to groups

of companies forming a

joint venture at the MPE’s discretion. The members of the joint venture are jointly and severally liable to

the Norwegian State for

obligations arising from petroleum operations carried out under the licence. The MPE decides

the form of the joint operating

agreements and accounting agreements. The MPE uses the same standard form of joint operating

agreement and accounting

agreement for all licenses.

The governing body of the joint venture is the management committee. In licences awarded

since 1996 where the State’s direct

financial interest (SDFI) holds an interest, the Norwegian State, acting through Petoro AS, may veto

decisions made by the joint

venture management committee, which, in the opinion of the Norwegian State, would not be in compliance

with the obligations set

forth in the licence with respect to the Norwegian State’s exploitation policies or financial interests. This

power of veto has never been

used.

Interests in production licences may be transferred directly or indirectly subject to the consent

of the MPE and the approval of the

tax treatment by the Ministry of Finance. In most licences, there are no pre-emption rights in favour

of the other licensees. However,

the SDFI, or the Norwegian State, as appropriate, still hold pre-emption rights in all licences.

The day-to-day management of a field is the responsibility of an operator appointed by the MPE.

The operator is in practice

always a member of the joint venture holding the production licence, although this is

not legally required. The terms of engagement of

the operator are set out in the joint operating agreement.

If important public interests are at stake, the Norwegian State may instruct the operators

on the NCS to reduce the production of

petroleum. An example of this occurred in May 2020, when the Norwegian State imposed

a reduction in oil production for the rest of

the year, due to the Covid-19 pandemic that led to a lower demand for oil and gas. The reduction in production was

distributed

between all fields on a pro rata basis.

A licence from the MPE is also required in order to establish facilities for the transportation

and utilisation of petroleum.

Ownership of most facilities for the transportation and utilisation of petroleum in Norway

and on the NCS is organised in the form of

joint ventures. The participants’ agreements are similar to joint operating agreements for production.

Licensees are required to prepare a decommissioning plan before a production licence or a licence

to establish and use facilities

for the transportation and utilisation of petroleum expires or is relinquished, or the use of a

facility ceases. On the basis of the

decommissioning plan, the MPE makes a decision as to the disposal of the facilities.

The information regarding Equinor’s activities and shares in Equinor’s production

licences on the NCS, set forth under the

heading ‘Exploration & Production Norway’ in Section 3.1 of Chapter 3 of the 2023

Annual Report is incorporated herein by reference.

On 1 July 2022, the MPE decided that parts of the Norwegian Security Act would

apply to Equinor. This enables Equinor to

receive and handle classified information from the authorities. In 2023, the MTIF and the MPE notified that

the Security Act will apply

in its entirety to Equinor as an undertaking controlling infrastructure and engaging in

activities which are of vital importance to

fundamental national functions. The Security Act entered into force 1 January 2019 and is designed

to protect national security

interests. The National Security Authority supervises undertakings which are covered

by the act.

Equinor 2023 Annual Report on Form 20-F

Gas sales and transportation from the NCS

Equinor markets gas from the NCS on its own behalf and on the Norwegian State’s behalf. Dry

gas is mainly transported through

the Norwegian gas transport system (Gassled) to customers in the UK and mainland Europe,

while liquified natural gas is transported

by vessels to worldwide destinations.

The Norwegian gas transport system, consisting of the pipelines and terminals through which

licensees on the NCS transport

their gas, is owned by a joint venture called Gassled. The Norwegian Petroleum Act

of 29 November 1996 and the pertaining

Petroleum Regulation establish the basis for non- discriminatory third-party access to the Gassled transport

system.

The tariffs for the use of capacity in the transport system are determined by applying a formula set out in

separate tariff

regulations stipulated by the MPE. The tariffs are paid for booked capacity rather than the

volumes actually transported.

The information set forth under the heading ‘

Marketing, Midstream & Processing

’ in Section 3.4 of Chapter 3 of the 2023 Annual

Report is also incorporated herein by reference.

The Norwegian State's participation

In 1985, the Norwegian State established the State’s direct financial interest (SDFI) through which the Norwegian

State has direct

participating interests in licences and petroleum facilities on the NCS. As a result, the Norwegian

State holds interests in a number of

licences and petroleum facilities in which Equinor also holds interests. Petoro AS, a company wholly

owned by the Norwegian State,

was formed in 2001 to manage the SDFI assets.

The Norwegian State has a coordinated ownership strategy aimed at maximising the aggregate value

of its ownership interests in

Equinor and the Norwegian State’s oil and gas. This is reflected in the Owner’s Instruction described

below, which contains a general

requirement that, Equinor, in its activities on the NCS, take account of these ownership interests in decisions that may affect the

execution of this marketing arrangement.

SDFI oil and gas marketing and sale

Equinor markets and sells the Norwegian State’s oil and gas together with Equinor’s

own production. The arrangement has been

implemented by the Norwegian State through a separate instruction (the Owner’s

Instruction) adopted by an extraordinary

shareholder meeting in 2001, with the Norwegian State as sole shareholder at the time.

The Owner’s Instruction sets out the specific

terms for the marketing and sale of the Norwegian State’s oil and gas.

Equinor is obliged under the Owner’s Instruction to jointly market and sell the Norwegian

State’s oil and gas as well as Equinor’s

own oil and gas. The overall objective of the marketing arrangement is to obtain the highest

possible total value for Equinor’s oil and

gas and the Norwegian State’s oil and gas, and to ensure an equitable distribution of the total value creation

between the Norwegian

State and Equinor.

The Norwegian State may at any time utilise its position as majority shareholder of Equinor

to withdraw or amend the Owner’s

Instruction.

Petroleum activities in the US are extensively regulated by multiple agencies in the US

federal government, and by tribal, state

and local regulation. The US government directly regulates development of hydrocarbons

on federal lands, in the US Gulf of Mexico,

and in other offshore areas. Different federal agencies directly regulate portions of the industry, and other general regulations related

to environmental, safety, and physical controls apply to all aspects of the industry. In addition to regulation by the US federal

government, any activities on US tribal lands (indigenous persons’ semi-sovereign territory)

are regulated by governments and

agencies in those areas. Significantly for Equinor’s US onshore interests, each

individual state has its own regulations of all aspects of

hydrocarbon development within its borders. A recent trend also includes local municipalities

adopting their own hydrocarbon

regulations.

In the US, hydrocarbon interests are considered a private property right. In areas owned by the US

government, that means that

the government owns the minerals in its capacity as landowner. The federal government, and each tribal and state government,

establishes the terms of its own leases, including the length of time of the lease,

the royalty rate, and other terms.

The vast majority of onshore minerals, including hydrocarbons, in every US state in which Equinor

has onshore interests, belong

to private individuals.

In order to explore for or develop hydrocarbons, a company must enter into a lease agreement with the

applicable governmental

agency for federal, state or tribal land, and for private lands, with each owner of the minerals the

company wishes to develop. In each

lease, the lessor retains a royalty interest in the production (if any) from the leased area. The lessee

owns a working interest and has

Equinor 2023 Annual Report on Form 20-F

the right to explore and produce oil and gas. The lessee incurs all the costs and liabilities

but will share only the portion of the revenue

that is net of costs and expenses and not reserved to the lessor through its royalty interest.

Leases typically have a primary term for a specified number of years (from one to ten years)

and a conditional secondary term

that is tied to the production life of the properties. If oil and gas is being produced in

paying quantities at the end of the primary term,

or the operator satisfies other obligations specified in the agreement, the lease typically continues beyond

the primary term (Held by

Production). Leases typically involve paying the lessor both a signing bonus based on the number

of leased acres and a royalty

payment based on the production.

Each US state has its own agencies that regulate the development, exploration, and production

of oil and gas activities. These

state agencies issue drilling permits and control pipeline transportation within state boundaries. The state

agencies particularly

relevant to Equinor’s US onshore activities include: (a) Pennsylvania Department

of Environmental Protection’s Office of Oil and Gas

Management, (b) Ohio Department of Natural Resources, Division of Oil and Gas, and (c) West Virginia Department of

Environmental

Protection. In addition, some state utility departments handle pipeline transportation within state

boundaries, and each state also has

its own department regulating environmental, health, and safety issues arising from oil and gas

operations.

Brazil

In Brazil, licences are mainly awarded according to a concession regime or a production sharing

regime (the latter specifically for

areas within the pre-salt polygon area or strategic areas) by the Federal Government. All state-owned

and private oil companies may

participate in the bidding rounds provided they follow the bidding rules and meet the qualification

criteria. The tender protocol issued

for each bidding round contains the draft of the concession agreement or the production sharing

agreement that the winners must

adhere to without the possibility of negotiating its terms, i.e., all the agreements signed

under a certain bidding round contain the

same general provisions and only differ in the particular items presented in the offers. There is no restriction on foreign

participation,

provided that the foreign investor incorporates a company under the Brazilian law for signing the

agreement and complies with the

requirements established by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels

(ANP).

The current criteria for the evaluation of bidding offers under the concession regime are: (a) signature bonus;

and (b) minimum

exploration program. However, in past bidding rounds the participants also had to offer a local content percentage as a firm

commitment. Companies can bid individually or in consortium always observing the qualification

criteria for operator and non-

operators.

The concession agreements are signed by ANP on behalf of the Federal Government. Generally, concessions are granted for a

total period of 35 years and typically the exploration phase lasts from two to eight

years, while the production phase may last 27 years

from the declaration of commerciality. Concessionaires are entitled to request the extension of each of these phases, subject to ANP

approval.

In bidding rounds involving the production sharing regime, the law grants to the Brazilian

government-controlled company

Petroleo Brasileiro S.A. – Petrobras, a right of preference to be the sole operator in the pre-salt

fields, with a minimum 30% of

participating interest. If this right is exercised, Petrobras may still participate in the bidding round

and present offers for the remaining

70% under the same conditions applicable to other participants. Likewise, in the concession bidding rounds,

companies may bid

individually or together with other companies. The winners are required to form a consortium with

Pre-Sal Petroleo S.A. (PPSA), a

Brazilian state-owned company, which is responsible for managing the production sharing agreement and selling the production

allocated to the Government under the profit oil. PPSA appoints 50% of the members

of the operating committee, including the

chairperson, in addition to certain veto rights and casting vote.

The current criteria for the evaluation of bidding offers under the production sharing regime is the offered percentage of profit oil.

The winner will be the company which offers the highest percentage to the government in accordance with the technical

and

economic parameters established for each block in the tender documents under a certain bidding

round.

Production sharing contracts are signed by the Ministry of Mines and Energy on behalf of the

Federal Government. Generally, the

contracts are valid for a period of 35 years which, by law, cannot be extended. Of the two phases of the contract – exploration and

production – the exploration phase may be extended provided that the total period of the contract

remains as 35 years.

In order to perform the exploration and exploitation of oil and gas reserves, companies

must obtain an environmental license

granted by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA),

which, together with ANP, is

responsible for the safety and environmental regulations regarding upstream activities.

HSE regulation relevant for the Norwegian upstream oil and gas activities in Norway

Equinor’s oil and gas operations in Norway must be conducted in compliance with

a reasonable standard of care, taking into

consideration the safety of workers, the environment and the economic values of installations

and vessels. The Petroleum Act

specifically requires that petroleum operations are carried out in such a manner that a high level of safety

is maintained and

developed in step with technological developments. Equinor is also required at all times to

have a plan to deal with emergency

Equinor 2023 Annual Report on Form 20-F

situations in Equinor’s petroleum operations. During an emergency, the Norwegian Ministry of Labour and Social Inclusion/Norwegian

Ministry of Transport/Norwegian Coastal Administration may decide that other parties should provide the necessary resources, or

otherwise adopt measures to obtain the necessary resources, to deal with the emergency for

the licensees’ account.

Liability for pollution damage

The Norwegian Petroleum Act imposes strict liability for pollution damage regardless of fault. Accordingly, as a holder of licences

on the NCS, Equinor is subject to statutory strict liability under the Petroleum Act as a result

of pollution caused by spills or discharges

of petroleum from petroleum facilities in any of Equinor’s licences.

A claim against the license holders for compensation relating to pollution damage shall initially

be directed to the operator, which

in accordance with the terms of the joint operating agreement, will distribute the claim

to the other licensees in accordance with their

participating interest in the licences.

Discharge permits

Emissions and discharges from Norwegian petroleum activities are regulated through several acts,

including the Petroleum Act,

the CO

Tax Act, the Sales Tax

Act, the Greenhouse Gas Emission Trading Act and the Pollution Control Act. Discharge of oil and

chemicals in relation to exploration, development and production of oil and natural gas

are regulated under the Pollution Control Act.

In accordance with the provisions of this Act, an operator must apply for a discharge permit from

relevant authorities on behalf of the

licence group in order to discharge any pollutants into water. Further, the Petroleum Act states that burning of gas in flares beyond

what is necessary for safety reasons to ensure normal operations is not permitted without approval

from the MPE. All operators on the

NCS have an obligation to, and are responsible, for establishing sufficient procedures for the monitoring and

reporting of any

discharge into the sea. The Norwegian Environment Agency, the Norwegian Petroleum Directorate and the Norwegian Oil Industry

Association have established a joint database for reporting emissions to air and discharges

to sea from the petroleum activities, the

Environmental Web (EW). All operators on the NCS report emission and discharge data directly into the database.

Regulations on reduction of carbon emissions and CO

storage

Equinor’s operations in Norway are subject to emissions taxes as well as emissions

allowances granted for Equinor’s larger

European operations under the emissions trading scheme. The agreed strengthening of the EU’s

emission trading scheme is

expected to affect energy and industry installations, which include Equinor’s installations at the NCS.

The price of emissions

allowances has increased significantly since the reforms to the EU Emission Trading Scheme in 2018 and is expected to increase

further towards 2030.

The Norwegian Climate Act promotes the implementation of Norway's climate targets as

part of the transition to a low-emission

society in Norway in 2050. This act may influence our activities through plans and actions

implemented by the state to achieve these

targets. Norway has presented a Climate Plan 2021-2030 with an updated target of 55% reduction

in GHG emissions in 2030

compared to 1990- levels. The Climate Plan states that the carbon cost for offshore oil and gas production in Norway

is expected to

increase to 2000 NOK/t CO2 towards 2030.

EU directive 2009/31/EC on the geological storage of CO2 is implemented in the Pollution Control

regulations, the regulations

related to the Petroleum Act and in a separate Storage regulation adopted under the 1963 Act

relating to scientific research and

exploration for and exploitation of subsea natural resources other than petroleum resources. The CO2 capture

and storage at

Equinor’s Sleipner and Snøhvit fields are governed by the Petroleum Act

and the Pollution Control regulations, and the CO2 storage

at Northern Lights JV DA and Smeaheia projects are governed by the Storage regulations

and the Pollution Control regulations.

HSE regulation of upstream oil and gas activities in the US

Equinor’s upstream activities in the US are heavily regulated at multiple levels, including

federal, state, and local municipal

regulation. Equinor is subject to those regulations as a part of its activities in the US

onshore (including Equinor’s assets in Ohio,

Pennsylvania and West Virginia), and in the US Gulf of Mexico.

The National Environmental Policy Act of 1969 is an umbrella procedural statute that requires

federal agencies to consider the

environmental impacts of their actions. Several substantive US federal statutes specifically cover

certain potential environmental

effects of hydrocarbon extraction activities. Those include: the Clean Air Act, which regulates air quality

and emissions; the Federal

Water Pollution Control Act (commonly known as the Clean Water Act), which regulates water quality and discharges; the Safe

Drinking Water Act, which establishes drinking water standards for tap water and underground injection rules; the Resource

Conservation and Recovery Act of 1976, which regulates hazardous and solid waste management;

the Comprehensive Environmental

Response, Compensation and Liability Act of 1980, which addresses remediation of legacy

disposal sites and release reporting; and

the Oil Pollution Act, which provides for oil spill prevention and response.

Other US federal statutes are resource-specific. The Endangered Species Act of 1973 protects

listed endangered and threatened

species and critical habitat. Other statutes protect certain species, including the Migratory Bird

Treaty Act, the Bald and Golden Eagle

Equinor 2023 Annual Report on Form 20-F

Protection Act and the Marine Mammal Protection Act of 1972. Other statutes govern natural resource

planning and development on

federal lands onshore and on the Outer Continental Shelf (OCS), including: the Mineral

Leasing Act; the Outer Continental Shelf

Lands Act; the Federal Land Policy and Management Act of 1976; the Mining Law

of 1872; the National Forest Management Act of

1976; the National Park Service Organic Act; the Wild and Scenic Rivers Act; the National Wildlife

Refuge System Administration Act

of 1966; the Rivers and Harbors Appropriation Act; and the Coastal Zone Management

Act of 1972.

The federal government regulates offshore exploration and production for the OCS, which extends from the

edge of state waters

(either 3 or 9 nautical miles from the coast, depending on the state) out to the edge

of national jurisdiction, 200 nautical miles from

shore. The Bureau of Ocean Energy Management (BOEM) manages federal OCS leasing

programs, conducts resource assessments,

and licences seismic surveys. The Bureau of Safety and Environmental Enforcement (BSEE)

regulates all OCS oil and gas drilling

and production. The Office of Natural Resources Revenue (ONRR) collects and disburses rents

and royalties from offshore and

onshore federal and Native American lands.

Additional federal statutes cover certain products or wastes, and focus on human health and

safety: the Toxic Substances

Control Act regulates new and existing chemicals and products that contain these chemicals;

the Hazardous Materials Transportation

Act regulates transportation of hazardous materials; the Occupational Safety and Health Act of

1970 regulates hazards in the

workplace; the Emergency Planning and Community Right-to-Know Act of 1986 provides emergency

planning and notification for

hazardous and toxic chemicals.

The federal and state governments share authority to administer some federal environmental programs

(e.g., the Clean Air Act

and Clean Water Act). States also have their own, sometimes more stringent, environmental laws. Counties, cities and other local

government entities may have their own requirements as well.

Equinor continually monitors regulatory and legislative changes at all levels and engages in the

stakeholder process through

trade associations and direct comments to suggested regulatory and legislative regimes, to ensure

that its operations remain in

compliance with all applicable laws and regulations. In particular, BSEE drilling and production regulations were extensively revised in

response to the 2010 Deepwater Horizon blowout and oil spill. The revised regulatory regime

includes requirements for enhanced well

design, improved blowout preventer design, testing and maintenance, and an increased number

of trained inspectors. The Biden

Administration continues to review and revise these regulations, and Equinor is engaged with

relevant governmental and industry

stakeholders to ensure that Equinor’s operations remain in compliance.

HSE regulation of upstream oil and gas activities in Brazil

Equinor’s oil and gas operations in Brazil must be conducted in compliance with

a reasonable standard of care, taking into

consideration the safety and health of workers and the environment. The Brazilian Petroleum Law

(Law No. 9,478/97) describes the

government’s policy objectives for the rational use of the country’s energy resources, including the protection of the environment. In

addition to the Brazilian Petroleum Law, Equinor is also subject to many other laws and regulations issued by different authorities,

including ANP, IBAMA, Federal Environmental Council (CONAMA) and Brazilian Navy. All those authorities have the power to impose

fines in case of non-compliance with the respective rules. The concession and production

sharing contracts also impose obligations

on operators and consortium members, who are jointly and severally liable. They must, at their

own account and risk, assume and

fully respond to all losses and damages caused directly or indirectly by the applicable consortium’s operations and their performance,

irrespective of fault, to the ANP, the Federal Government and third parties, without prejudice to any recourse rights which may have

been agreed separately among the consortium members (such as in a joint operating agreement).

The exploration, drilling and production of oil and gas depend on environmental licences which

define the conditions for the

implementation of the project and compliance measures to mitigate and control environment impact. Equinor

is subject to fines and

even licence suspension and/or cancellation in case of non-compliance with such conditions.

In Brazil, Equinor is also required to have an emergency response system as per ANP Resolution

No. 882/2022 to deal with

emergency situations in its petroleum operations, as well as an oil spill response plan in accordance

to CONAMA Resolution No.

398/2008, for each asset to minimise the environmental impact of any environmental

unexpected situation that may generate spill of

oil or chemical to sea.

Discharge permits

Discharges from Brazilian petroleum activities are regulated through several acts, including the CONAMA

Resolution No.

393/2007 for produced water, CONAMA Resolution No. 357/2005 and CONAMA Resolution No. 430/2011 for effluents (sewage, etc)

and IBAMA technical instructions for drilling waste. According to Environmental Ministry Ordinance

No. 422/2011, the discharge of

chemicals in connection with exploration, development and production of oil and natural gas is

assessed as part of the environmental

permitting process and the operator must apply for any discharge permit from relevant authorities

on behalf of the license group in

order to discharge any pollutants into the water.

Regulations on reduction of carbon emissions

Equinor 2023 Annual Report on Form 20-F

Although Equinor’s operations in Brazil are not subject to emissions taxes (CO

limit) yet, there are initiatives within the Brazilian

congress for the establishment of a carbon market. At this point it is unclear if and when these initiatives

will be turned into law.

The CONAMA Regulation No. 382/06 regulates air emissions limits for pollutant gases (e.g. NOx) from

all fixed sources that have

total power consumption higher than 100MW.

Gas flares must be authorised by the ANP under ANP Resolution No. 806/2020, which

also sets out cases in which ANP

authorisation is not necessary.

The Brazilian government signed the Paris Agreement in 2015. During COP26, Brazil updated

its ambition to reduce its

greenhouse gas emissions by 37% until 2025 and 50% until 2030, compared to 2005 levels. Because

of the desire to boost the

economy and an expected growing energy demand, the focus on emissions reduction is

on improved control of forests and land use

and for that Brazil continue to adhere to the Forest for Deal agreement, committing

to take actions to reduce illegal deforestation until

2030. The country also adheres to the Global Methane Pledge.

Regulatory framework for renewable energy operations

Equinor’s renewables positions currently mainly consist of offshore wind farms in operation and

development in the UK, the state

of New York and Poland. In these jurisdictions the legislation is structured around a lease where permission to develop is granted

following a series of approvals relating largely to environmental and social impact assessments. The government

separately auctions

a subsidized power purchase price either through renewable offtake certificates or contracts for difference. In both cases, Equinor

and

its partners take the risk for developing, constructing and operating the wind farms within a

fixed timeframe.

Other

Equinor entered into agreements with the National Iranian Oil Company (NIOC), namely, a Development Service Contract for

South Pars Gas Phases 6, 7 & 8 (offshore part), an Exploration Service Contract for the Anaran

Block and an Exploration Service

Contract for the Khorramabad Block, which are located in Iran. Equinor’s operational

obligations under these agreements have

terminated and the licences have been abandoned. The cost recovery programme for these contracts

was completed in 2012, except

for the recovery of tax and obligations to the Social Security Organization (SSO). From 2013

to November 2018, after closing

Equinor’s office in Iran, Equinor’s activity was focused on a final settlement with

the Iranian tax and SSO authorities relating to the

above-mentioned agreements.

In a letter from the US State Department of 1 November 2010, Equinor was informed

that it was not considered to be a company

of concern based on its previous Iran-related activities.

Equinor has an intention to settle historic obligations in Iran while remaining compliant with

applicable sanctions and trade

restrictions against Iran. Since November 2018 Equinor has not conducted any activity

in Iran, nor has it been able to resolve

tax

claims from the Iranian authorities.

No payments were made to Iranian authorities during 2023.

Taxation of Equinor

Norway

Equinor’s profits, both from offshore oil and natural gas activities and from onshore activities, are

subject to Norwegian corporate

income tax. In addition, a special petroleum tax is levied on profits from petroleum production

and pipeline transportation on the NCS.

In June 2022 the parliament enacted a cash-flow based tax system for the special petroleum tax

with effect from 1 January 2022.

After the reform, the Norwegian petroleum income is taxable at a tax rate of 71.8% after deducting

a calculated 22% corporate tax.

The corporate tax is deductible in the basis for the special petroleum tax, resulting in a 78%

marginal tax rate. For further information,

see note 11 Income taxes to the Consolidated financial statements.

Investment costs in the ordinary tax base (22%) will continue to be depreciated over six years.

In the special tax base,

investments are written off immediately in line with the cash-flow based tax system. Projects covered by the temporary rules

introduced in 2020 have had a tax uplift of 12.4% in 2023. The temporary rules apply to investments covered

by field or infrastructure

plans (PDOs and PIOs) submitted to the MPE after 12 May 2020 and before 1 January

2023 and approved before 1 January 2024.

The temporary rules will continue to apply until (and including) the year of planned production or project start-up

according to the

approved plans.

Equinor’s international petroleum activities are subject to tax pursuant to local legislation.

Equinor 2023 Annual Report on Form 20-F

Equinor’s operations in the US are subject generally to corporate income, severance

and production, ad valorem and transaction

taxes levied by the federal, state and local tax authorities, and to royalties payable to federal,

state and local authorities and, in some

cases, private landowners. The federal corporate income tax rate in the US is 21%, and there is an alternative 15% minimum

tax on

corporate book income for corporations with profits over USD 1 billion. US companies are also subject

to the Base Anti-abuse Tax

(“BEAT”) which imposes tax at 10% until 2026 and 12.5% thereafter on payments to foreign affiliates of US companies if those

payments exceed a given threshold of total tax-deductible expenditures.

Brazil

Corporate income tax and social contribution are levied on taxable net income at a combined rate

of 34%. A simplified tax regime

with a lower effective tax rate is available for legal entities with gross revenues below a threshold of 78 million

Brazilian reais per year.

In addition, there are several indirect taxes, but indirect tax rate on exports is set to zero.

The concessionary tax regime in Brazil usually includes government takes such as a 10% royalty, and special participation tax

that varies based on time, location and production between 10% and 40%, using a reference

price that is established by the Brazilian

petroleum regulator (ANP). The Production Sharing Regime in Brazil usually includes a 15%

royalty, an annual 80% cost recovery

ceiling, and a biddable government profit share.

In December 2023, the Brazilian Congress approved wide-ranging tax legislation which

aims to simplify the indirect tax system

through the introduction of a multi-tiered value added tax (VAT) system, whereby VAT

would be levied with a federal rate and a state

and/or municipality rate.

The states or municipalities would individually set their respective rates and administer

the tax for the local

element of the VAT.

The VAT

will be phased into effect over the next seven years. The new law also includes an excise tax on the

extraction, sale or commercialization of goods and services with a “harmful effect on health or environment”

of up to 1% of the market

value of extracted production.

The specific rate of the excise tax will be set with a complimentary law which must

be passed within six

months of the enactment, and so is expected by the end of June 2024.

This excise tax would increase operating costs for Equinor in

Brazil.

The new tax law in Brazil also seeks to preserve suspensions or exemptions from certain indirect

taxes for importation of capital

goods into Brazil. The details of these tax incentives will be contained in the Complimentary

Law described above.

Finally, there is a proposal package for direct taxes as well, which would reduce the corporate tax rate, while also introducing a

withholding tax on dividends paid by Brazilian incorporated entities. The direct tax legislation

is expected to be considered by the

Brazilian Congress later in 2024.

The UK government introduced a 25% Energy Profits Levy (EPL) in May 2022, which was

increased to 35% from January 2023.

The levy is charged on profits from oil and gas operations in the UK or on the UK

Continental Shelf and is in addition to existing profit-

based taxes on the sector. The EPL increased the rate of tax on oil and gas company profits to 75% from January 2023.

In addition, the UK government also introduced the Electricity Generator Levy (EGL) which

took effect from 1 January 2023. The

EGL imposes a tax of 45% on exceptional receipts generated from the production

of wholesale electricity which is sold at an average

price in excess of £75 per MWh.

Both the EPL and EGL are scheduled to expire on 31 March 2028.

Disclosures regarding oil and gas operations

The 2023 Oil and Gas Reserves Report is incorporated herein by reference. See

also notes 5 Segments and 7 Total revenues

and other income to the Consolidated financial statements.

The information set forth under the headings “Operational data”, “Sales prices”

and “Sales volumes” in Section 2.1 of Chapter 2

on pages 47 – 49 and “Proved oil and gas reserves” in Section 2.1 of Chapter 2 on pages 50

– 54 of the 2023 Annual Report is also

incorporated herein by reference.

Supplementary oil and gas information pursuant to FASB Topic 932

The following information is reported pursuant to FASB Topic 932.

Equinor 2023 Annual Report on Form 20-F

Capitalised cost related to oil and gas producing

activities

Consolidated companies

At 31 December

(in USD million)

2023

2022

2021

Unproved properties

5,022

5,917

7,077

Proved properties, wells, plants and other equipment

183,316

181,189

193,918

Total capitalised cost

188,338

187,106

200,994

Accumulated depreciation, impairment and amortisation

(132,902)

(133,584)

(139,890)

Net capitalised cost

55,436

53,523

61,104

Net capitalised cost related to equity accounted investments as of 31 December 2023 was USD

0 million, USD 463 million in 2022

and USD 900 million in 2021. The reported figures are based on capitalised costs within the

upstream segments in Equinor, in line

with the description below for result of operations for oil and gas producing activities.

Expenditures incurred in oil and gas property acquisition,

exploration and development activities

These expenditures include both amounts capitalised

and expensed.

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2023

Exploration expenditures

662

310

253

1,276

Development costs

4,864

470

509

1,084

1,279

8,206

Acquired proved properties

1,271

Acquired unproved properties

352

381

Total

5,878

1,762

544

1,400

1,550

11,134

Full year 2022

Exploration expenditures

494

150

360

1,088

Development costs

4,483

320

379

712

965

6,859

Acquired proved properties

110

226

374

Acquired unproved properties

Total

5,093

573

474

862

1,325

8,327

Full year 2021

Exploration expenditures

522

139

299

1,026

Development costs

4,732

322

256

605

977

6,892

Acquired proved properties

Acquired unproved properties

(3)

Total

5,263

397

262

768

1,273

7,963

Equinor 2023 Annual Report on Form 20-F

Expenditures incurred in exploration and development activities related to equity accounted investments was USD

0 million in 2023,

USD 155 million in 2022 and USD 233 million in 2021.

Results of operation for oil and gas producing activities

As required by Topic 932, the revenues and expenses included in the following table reflect only those relating to the oil and gas

producing operations of Equinor.

The results of operations for oil and gas producing activities are included in the three upstream reporting segments

Exploration &

Production Norway (E&P Norway), Exploration & Production International (E&P International) and Exploration

& Production USA (E&P

USA) as presented in note 5 Segments

to the Consolidated financial statements. Production cost is based on operating

expenses

related to production of oil and gas. From the operating expenses certain expenses such

as; transportation costs, accruals for

over/underlift position and royalty payments costs are excluded. These expenses and mainly upstream business administration

are

included as other expenses in the tables below. Other revenues mainly consist of gains and losses from sales of oil and gas interests

and gains and losses from commodity-based derivatives within the upstream segments.

Income tax expense is calculated on the basis of statutory tax rates adjusted for uplift and tax

credits. No deductions are made for

interest or other elements not included in the table below.

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2023

Sales

107

533

127

921

Transfers

37,892

1,121

2,242

3,954

2,646

47,855

Other revenues

387

129

238

887

Total revenues

38,341

1,357

2,832

4,319

2,814

49,663

Exploration expenses

(476)

(20)

(37)

(322)

(825)

Production costs

(2,898)

(250)

(482)

(494)

(593)

(4,717)

Depreciation, amortisation and net impairment losses

(5,017)

(840)

(567)

(1,489)

(1,026)

(8,939)

Other expenses

(862)

(456)

(691)

(446)

(2,436)

Total costs

(9,253)

(1,566)

(1,067)

(2,996)

(2,035)

(16,917)

Results of operations before tax

29,088

(209)

1,765

1,323

779

32,746

Tax expense

(22,543)

(961)

(358)

(106)

(23,934)

Results of operations

6,545

(175)

804

965

673

8,812

Net income/(loss) from equity accounted investments

(13)

Equinor 2023 Annual Report on Form 20-F

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2022

Sales

155

554

615

166

1,578

Transfers

74,468

1,252

3,019

5,168

1,853

85,760

Other revenues

1,308

(203)

(1)

213

1,374

Total revenues

75,931

1,603

3,633

5,547

1,998

88,712

Exploration expenses

(366)

(249)

(69)

(220)

(320)

(1,224)

Production costs

(2,916)

(202)

(470)

(399)

(518)

(4,505)

Depreciation, amortisation and net impairment losses

(4,167)

(623)

(530)

(361)

(579)

(6,260)

Other expenses

(866)

(201)

(533)

(413)

(2,010)

Total costs

(8,315)

(1,275)

(1,066)

(1,513)

(1,830)

(13,999)

Results of operations before tax

67,616

328

2,567

4,034

168

74,713

Tax expense

(52,070)

(152)

(1,043)

2,458

361

(50,447)

Results of operations

15,546

176

1,524

6,492

529

24,266

Net income/(loss) from equity accounted investments

120

172

Equinor 2023 Annual Report on Form 20-F

Consolidated companies

(in USD million)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

Full year 2021

Sales

476

638

207

1,434

Transfers

38,578

960

2,021

3,712

1,249

46,520

Other revenues

711

(14)

221

932

Total revenues

39,386

1,422

2,659

4,140

1,279

48,886

Exploration expenses

(363)

(108)

(211)

(362)

(1,021)

Production costs

(2,600)

(196)

(497)

(397)

(378)

(4,068)

Depreciation, amortisation and net impairment losses

(4,900)

(2,462)

(444)

(1,734)

(416)

(9,956)

Other expenses

(1,052)

(140)

(674)

(292)

(2,105)

Total costs

(8,915)

(2,906)

(865)

(3,016)

(1,448)

(17,150)

Results of operations before tax

30,471

(1,484)

1,794

1,124

(169)

31,736

Tax expense

(22,887)

835

(652)

(14)

(201)

(22,919)

Results of operations

7,585

(649)

1,142

1,110

(370)

8,817

Net income/(loss) from equity accounted investments

176

215

Average production cost in USD per boe

based on entitlement

volumes (consolidated)

Norway

Eurasia

excluding

Norway

Africa

USA

Americas

excluding

USA

Total

2023

2022

2021

Production cost per boe is calculated as the production costs in the result of operations table, divided

by the produced entitlement

volumes (mboe) for the corresponding period.

Equinor 2023 Annual Report on Form 20-F

Organizational Structure

Exhibit 8 to this 2023 Form 20-F is incorporated herein by reference. The table within Exhibit

8 shows significant subsidiaries and

significant equity accounted companies within the Equinor group as of 31 December 2023.

Property, Plant and Equipment

Equinor has interests in real estate in many countries throughout the world,

including as part of certain developments and

projects of Equinor or in which Equinor participates.

Equinor’s three largest office buildings are (i) its head office located at Forusbeen 50, Stavanger, Norway which comprises

approximately 135,000 square meters of office space, (ii) its office building in Sandslivegen 90, Bergen, Norway which comprises

approximately 99,488 square meters of office space, and (iii) its office building located at Fornebu on the outskirts of Oslo which

comprises approximately 65,500 square meters. All three office buildings are leased by Equinor. Under a new lease agreement

entered into in 2022 for the office building at Fornebu, Equinor has reduced its area to 44,500 square

meters with effect from around

the start of year 2024. The office building in Bergen is owned by Sandsliveien 90 AS, a subsidiary

of Equinor Pensjon.

The information set forth under the following headings of the 2023 Annual Report is incorporated herein

by reference:

●

Investments in Section 2.2 of Chapter 2 on page 98;

●

Exploration & Production Norway in Section 3.1 of Chapter 3 on pages 124 – 129;

●

Exploration & Production International in Section 3.2 of Chapter 3 on pages 130 – 136;

●

Exploration & Production USA in Section 3.3 of Chapter 3 on pages 137 – 141;

●

Marketing, Midstream & Processing in Section 3.4 of Chapter 3 on pages 142 – 147;

and

●

Renewables in Section 3.5 of Chapter 3 on pages 148 – 152.

See also notes 12 Property, plant and equipment and 25 Leases to the Consolidated financial statements.

Production per field

The following tables show the regional production by field.

Equinor 2023 Annual Report on Form 20-F

E&P Norway - Equinor operated fields, average daily

entitlement production

Geographical area

Equinor's equity

interest in %

stream

Licence expiry

date

Average

production in

2023 mboe/day

Field

Johan Sverdrup

The North Sea

42.63

2019

2036-2037

319

Troll Phase 1 (Gas)

The North Sea

30.58

1996

2030

198

Oseberg

The North Sea

49.30

1988

2031

Gullfaks

The North Sea

51.00

1986

2036

Visund

The North Sea

53.20

1999

2034

Aasta Hansteen

The Norwegian Sea

51.00

2018

2041

Åsgard

The Norwegian Sea

35.01

1999

2027

Snøhvit

The Barents Sea

36.79

2007

2035

Tyrihans

The Norwegian Sea

58.84

2009

2029

Snorre

The North Sea

33.28

1992

2040

Gina Krog

The North Sea

58.70

2017

2032

Martin Linge

The North Sea

51.00

2021

2027

Kvitebjørn

The North Sea

39.55

2004

2031

Statfjord Unit

The North Sea

64.10

1979

2026

Sleipner West

The North Sea

58.35

1996

2028

Fram

The North Sea

45.00

2003

2040

Grane

The North Sea

36.61

2003

2030

Gudrun

The North Sea

36.00

2014

2032

Troll Phase 2 (Oil)

The North Sea

30.58

1995

2030

Mikkel

The Norwegian Sea

43.97

2003

2028

Heidrun

The Norwegian Sea

13.04

1995

2024-2025

Tordis

The North Sea

41.50

1994

2040

Alve

The Norwegian Sea

53.00

2009

2029

Trestakk

The Norwegian Sea

59.10

2019

2029

Vigdis

The North Sea

41.50

1997

2040

Norne

The Norwegian Sea

39.10

1997

2026

Kristin

The Norwegian Sea

54.82

2005

2027-2033

Hyme

The Norwegian Sea

42.50

2013

2029

Valemon

The North Sea

66.78

2015

2031

Njord

The Norwegian Sea

27.50

1997

2034

Sleipner East

The North Sea

59.60

1993

2028

Statfjord North

The North Sea

45.00

1995

2026

Morvin

The Norwegian Sea

64.00

2010

2027

Breidablikk

The North Sea

39.00

2023

2030

Gungne

The North Sea

62.00

1996

2028

Utgard

The North Sea

38.44

2019

2028

Statfjord East

The North Sea

43.25

1994

2026-2040

Urd

The Norwegian Sea

63.95

2005

2026

Sigyn

The North Sea

60.00

2002

2035

Sindre

The North Sea

74.66

2017

2026-2034

Fram H Nord

The North Sea

49.20

2014

2024-2035

Sygna

The North Sea

43.43

2000

2026-2040

Gimle

The North Sea

74.66

2006

2026-2034

Heimdal

The North Sea

29.44

1985

2023

Byrding

The North Sea

70.00

2017

2024-2035

Tune

The North Sea

50.00

2002

2025-2032

Total Equinor operated fields

1,261

Equinor 2023 Annual Report on Form 20-F

1) Åsgard changed ownership January 1st, 2023

from 34,57% to 35,01%

2) The Statfjord and Utgard fields in the North

Sea span the boundary between the Norwegian and UK

continental shelves. The volumes

pertain to Equinor’s operating interest in

Statfjord and Utgard on the NCS. For the volumes

pertaining to Equinor’s operating interest in

Statfjord and Utgard on the UKCS, please see Exploration

& Production

International in Section 3.1.2 of Chapter 3.

E&P Norway - Partner operated fields, average daily

entitlement production

Geographical area

Equinor's equity

interest in %

Operator

stream

Licence expiry

date

Average

production in

2023 mboe/day

Field

Skarv

The Norwegian Sea

36.17

Aker BP ASA

2013

2029-2036

Ormen Lange

The Norwegian Sea

25.35

A/S Norske Shell

2007

2040-2041

Ivar Aasen

The North Sea

41.47

Aker BP ASA

2016

2029-2036

Goliat

The Barents Sea

35.00

Vår Energi ASA

2016

2042

Ærfugl Nord

The Norwegian Sea

30.00

Aker BP ASA

2021

2033

Marulk

The Norwegian Sea

33.00

Vår Energi ASA

2012

2030

Enoch

The North Sea

11.78

Repsol Sinopec North Sea Ltd.

2007

2024

Total partner operated fields

114

Total E&P Norway including share of equity accounted production

Equinor 2023 Annual Report on Form 20-F

E&P International - Average daily equity production

Field

Country

Equinor's

equity

interest in %

Operator

stream

Licence

expiry date

Average daily

equity

production in

2023

mboe/day

Americas (excluding US)

115

Peregrino

Brazil

60.00

Equinor Brasil Energia Ltda.

2011

2040

Roncador

Brazil

25.00

Petróleo Brasileiro S.A.

1999

2052

Bandurria Sur

Argentina

30.00

Yacimientos Petrolíferos Fiscales S.A.

2015

2050

Hebron

Canada

9.01

ExxonMobil Canada Properties

2017

HPB

Hibernia/Hibernia Southern

Extension

Canada

Varies

Hibernia Management and Development

Company Ltd.

1997

HPB

Bajo del Toro

Argentina

50.00

Yacimientos Petrolíferos Fiscales S.A.

2022

2055

Africa

175

Block 17

Angola

22.16

TotalEnergies E&P Angola S.A.

2001

2045

In Salah

Algeria

31.85

Sonatrach

2004

2027

Eni In Salah Limited

Equinor In Salah AS

Agbami

Nigeria

20.21

Star Deep Water Petroleum Limited

(an affiliate of Chevron in Nigeria)

2008

2042

Block 15

Angola

12.00

Esso Exploration Angola Block 15 Limited

2004

2032

In Amenas

Algeria

45.90

Sonatrach

2006

2027

Eni In Amenas Limited

Equinor In Amenas AS

Block 31

Angola

13.33

BP Exploration (Angola) Ltd

2012

2031

Murzuq

Libya

10.00

Akakus Oil Operations

2003

2037

Eurasia

ACG

Azerbaijan

7.27

BP Exploration (Caspian Sea) Limited

1997

2049

Mariner

65.11

Equinor UK Limited

2019

HBP

Buzzard

29.89

CNOOC Petroleum Europe Limited

2007

2046

Corrib

Ireland

37.50

Vermilion Exploration and Production

Ireland Limited

2015

2031

Utgard

38.00

Equinor Energy AS

2019

HBP

Statfjord Unit

14.53

Equinor Energy AS

1979

HBP

Barnacle

100.00

Equinor UK Limited

2019

HBP

Total E&P International

345

Held by Production (HBP): A leasehold interest

that is perpetuated beyond its primary term as

long as there is production in paying

quantities from well(s) on the lease or lease(s) pooled

therewith.

Equinor's equity interests are 5.0% in Hibernia and

9.26% in Hibernia Southern Extension.

The complete name for Sonatrach is Société nationale

de transport et de commercialisation d’hydrocarbures.

In March 2023, the transaction to sell the company’s non-operated

equity position in the Corrib gas project in

Ireland closed after receiving

the necessary regulatory approvals. For more information,

see note 6 Acquistions and disposals to the

Consolidated financial statements.

The Utgard and Statfjord Unit fields span the boundary between

the Norwegian and UK continental shelves. In this table

we report only

volumes pertaining to the Equinor share in UKCS.

Actual production for Barnacle was 0.4 mboe/day.

In November 2023, Equinor announced its intention

to exit its business activities in Nigeria.

In December 2023, Equinor and SOCAR signed an

agreement whereby Equinor will divest and

transfer all its remaining assets in

Azerbaijan to SOCAR.

Production started in July 2023 following Equinor’s

acquisition of Suncor Energy UK Limited.

Equinor 2023 Annual Report on Form 20-F

E&P USD - Average daily equity production

Field

Country

Equinor's equity

interest in %

Operator

stream

Licence

expiry date

Average daily

equity

production in

2023 mboe/day

Appalachian (APB)

Varies

Equinor/others

2008

HBP

223

Caesar Tonga

46.00

Anadarko U.S. Offshore LLC

2012

HBP

Tahiti

25.00

Chevron USA Inc.

2009

HBP

Vito

36.89

Shell Offshore Inc.

2023

HBP

Julia

50.00

ExxonMobil Corporation

2016

HBP

St. Malo

21.50

Chevron USA Inc.

2014

HBP

Jack

25.00

Chevron USA Inc.

2014

HBP

Big Foot

27.50

Chevron USA Inc.

2018

HBP

Stampede

25.00

Hess Corporation

2018

HBP

Titan

100.00

Equinor USA E&P Inc.

2018

HBP

Heidelberg

12.00

Anadarko U.S. Offshore LLC

2016

HBP

Total E&P USA

363

Appalachian basin contains Marcellus and Utica formations.

Equinor’s actual equity interest varies depending

on wells and area.

Operators are Equinor USA Onshore Properties

Inc, Chesapeake Operating LLC, Southwestern

Production Company, Chief Oil &

Gas LLC, and several other operators.

Actual production for Heidelberg was 0.4 mboe/day.

Held by Production (HBP): A leasehold interest

that is perpetuated beyond its primary term as

long as there is production in paying

quantities from well(s) on the lease(s) pooled therewith.

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM

5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The discussion does not address certain items in respect of 2021. A discussion of

such items may be found in the Annual Report

on Form 20-F for the year ended 31 December 2022, filed with the SEC 23 March 2023.

Operating Results

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

●

Group financial performance in Section 2.1. of Chapter 2 on pages 39 – 46;

●

Group outlook in Section 2.1 of Chapter 2 on page 46;

●

Contextual Introduction, Management approach and Performance Disclosure in Section 2.2. of

Chapter 2 on pages

91 – 98;

●

Return on average capital employed (ROACE), Relative ROACE (peer group rank) and Relative

TSR in Section

2.2. of Chapter 2 on page 99;

●

Net zero pathway in Section 2.2 of Chapter 2 on pages 110 – 112; and

●

Reporting Segment Performance in Chapter 3 on page 123.

See also the information set forth under the heading “Applicable Laws and Regulations” in “Item

4―Information on the

Company―B. Business Overview” of this 2023 Form 20-F, and note 3 Consequences of initiatives to limit climate changes to the

Consolidated financial statements.

Financial Review

The following tables show the financial performance by reporting segment.

Equinor 2023 Annual Report on Form 20-F

E&P Norway - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

38,340

75,930

(50%)

Operating, selling, general and administrative expenses

(3,759)

(3,782)

(1%)

Depreciation, amortisation and net impairment losses

(5,017)

(4,167)

20%

Exploration expenses

(476)

(366)

30%

Net operating income/(loss)

29,087

67,614

(57%)

For the year ended 31 December

Operational information

2023

2022

Change

E&P Norway entitlement liquid and gas production

(mboe/day)

1,374

1,387

(1%)

E&P Norway entitlement liquids production (mboe/day)

645

605

E&P Norway entitlement gas production (mboe/day)

729

782

(7%)

Average liquids price (USD/bbl)

78.6

97.5

(19%)

Average internal gas price (USD/MMBtu)

12.20

31.22

(61%)

Financial Performance

Equinor revenues continued to remain strong for 2023 with production on par with 2022, even though

lower prices for gas and liquids

during the year led to a decrease in net operating income and revenues compared

to 2022. Other income was impacted by gain from

sale of ownership shares, with USD 222 million in 2023 for the Statfjord area compared to USD

730 million for Martin Linge and

Ekofisk in 2022. In addition, other income in 2022 included a significant positive effect on embedded derivatives from higher short

term gas prices.

Increased operation and maintenance costs, as well as environmental expenses led to increased

operating, selling, general and

administrative expenses from 2022 to 2023. The development in interest rates and increased cost

estimates impacted the Gassled

removal cost negatively, when comparing 2023 to 2022. In contrast, falling energy prices, led to decreased transportation and

electricity cost partially offsetting the increases. Exchange rate development in the NOK/USD during the

year 2023 offset the cost

increases and their visibility in the reported numbers.

The NOK/USD exchange rate development in the year and the sale of ownership shares

in Martin Linge and Ekofisk in 2022 reduced

depreciation, amortisation and net impairment losses in 2023. However, depreciation, amortisation and net impairment losses were

negatively impacted by a USD 588 million impairment of a North Sea asset in 2023 as opposed to

net impairment reversals of USD

814 million in 2022 driving an overall increase year-on-year.

Increased exploration drilling activity levels (28 wells this year compared to 21 wells last year) and

increased seismic and field

development led to an increase in exploration expenses in 2023 compared to 2022. An increased

capitalisation rate partially offset the

increase.

Additions to PP&E, intangibles and equity accounted investments increased mainly due to

increased activity in the sanctioned projects

portfolio both for Equinor-

and partner operated projects. Decreased investments on the Johan Sverdrup field following completion

phase 2 partially offset this.

Equinor 2023 Annual Report on Form 20-F

E&P International - Financial information

For the year ended 31 December

(in USD million)

2023

2022

23-22 change

Total revenues and other income

7,032

7,431

(5%)

Purchases [net of inventory]

(70)

(116)

(40%)

Operating, selling, general and administrative expenses

(2,176)

(1,698)

28%

Depreciation, amortisation and net impairment losses

(2,433)

(1,731)

41%

Exploration expenses

(20)

(638)

(97%)

Net operating income/(loss)

2,332

3,248

(28%)

For the year ended 31 December

Operational Information

2023

2022

23-22 change

E&P International equity liquid and gas production

(mboe/day)

345

328

E&P International entitlement liquid and gas production

(mboe/day)

266

235

13%

Production sharing agreements (PSA) effects (mboe/day)

(15%)

Average liquids price (USD/bbl)

72.6

92.0

(21%)

Financial Performance

The growth in entitlement production across E&P international contributed to strong financial results,

despite the impact of lower prices

in 2023. The decrease in operating income and revenues was mainly due to the reduction

in liquid commodity prices, as liquids

constitute 90% of E&P International’s entitlement production. The sharp decline in gas prices further contributed to the

decrease in

revenues.

Increased operation and maintenance expenses associated with turnarounds across various fields

led to increased operating

expenses from 2022 to 2023. Increased royalties and production fees linked to increased

production at the Peregrino field also

contributed to the overall rise in costs. This was partially offset by decreased royalties at Roncador due to lower prices

in 2023.

The inclusion of Buzzard following the Suncor Energy UK Limited acquisition, increased production from Peregrino

in Brazil and

Bandurria Sur in Argentina, in addition to several new investments in producing

fields resulted in an overall increase in depreciation

from 2022 to 2023.

Net impairment related to property, plant, and equipment increased from USD 286 million in 2022 to USD 310 million in 2023. In 2023,

the impairment was mainly related to the planned exit from Azerbaijan. In 2022,

the main contributors were impairments related to

Equinor’s exit from Russia, partially offset by an impairment reversal of an asset in the Europe

and Asia area, supported by a slight

increase in reserves estimates.

Well costs related to Karabagh in Azerbaijan, and drilling costs in Canada expensed in 2022 were

the main drivers for the reduction in

exploration expenses from 2022 to 2023. The capitalisation of previously expensed exploration wells

in Brazil also positively impacted

the 2023 numbers.

The Suncor UK acquisition in 2023 further influenced the movement in the additions to

PP&E, intangibles and equity accounted

investments.

Equinor 2023 Annual Report on Form 20-F

E&P USA - Financial information

For the year ended 31 December

(in USD million)

2023

2022

23-22 change

Total revenues and other income

4,319

5,523

(22%)

Operating, selling, general and administrative expenses

(1,178)

(938)

26%

Depreciation, amortisation and net impairment losses

(1,489)

(361)

>100%

Exploration expenses

(299)

(201)

49%

Net operating income/(loss)

1,353

4,022

(66%)

For the year ended 31 December

Operational information

2023

2022

23-22 change

E&P USA equity liquids and gas production (mboe/day)

363

324

12%

E&P USA entitlement liquid and gas production (mboe/day)

314

279

12%

Royalties

10%

Average liquids price (USD/bbl)

64.4

81.0

(20%)

Average internal gas price (USD/mmbtu)

1.77

5.55

(68%)

Financial Performance

Increased entitlement production due to Vito field start-up, Caesar Tonga flowline installation, and increased well count partially offset

the impact of lower realised liquids and gas prices which were the main drivers for the

decrease in revenues in 2023 compared to

2022.

Operating expenses increased due the start-up of the Vito platform, combined with increased maintenance activity

in the Appalachian

basin contributing to increased operations and maintenance expenditure.

Depreciation increased in 2023 due to additional production, decreased impairment reversals, and additional

capital expenditures both

offshore and onshore. This increase was partially offset by improved reserves.

Impairment reversals related to property, plant, and equipment amounted to USD 290 million in 2023 which were primarily driven by

improved expected reserves due to additional well opportunities. In 2022, net impairments reversals

amounted to USD 1,071 million

mainly driven by increased short-term prices.

Increased exploration expenses were driven by drilling activity for four exploration prospects in the Gulf

of Mexico. The four prospects

were dry or non-commercial and were expensed accordingly, resulting in a significant increase in exploration cost.

Investments in 2023 in the recently sanctioned Sparta project, St. Malo Water Injection, and Appalachian Basin Partner

Operated

assets drove the increase in additions to PPE, intangibles and equity accounted investments from

2022.

Equinor 2023 Annual Report on Form 20-F

MMP - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Total revenues and other income

105,908

148,105

(28%)

Purchases [net of inventory]

(95,769)

(139,916)

(32%)

Operating, selling, general and administrative expenses

(4,916)

(4,591)

Depreciation, amortisation and net impairment losses

(1,239)

N/A

Net operating income/(loss)

3,984

3,612

10%

For the year ended 31 December

Operational information

2023

2022

Change

Liquid sales volume (mmbbl)

956.3

815.9

17%

Natural gas sales Equinor (bcm)

58.9

63.3

(7%)

Natural gas entitlement sales Equinor (bcm)

53.2

56.1

(5%)

Power generation (GWh) Equinor share

2,298

1,012

N/A

Realised piped gas price Europe (USD/MMBtu)

13.86

32.84

(58%)

Realise piped gas price US (USD/MMBtu)

2.09

5.89

(65%)

1) Restated. Restatement due to a change in

definition of the price marker for realised gas price

and improved methodology for calculating

liquids sales volumes. For more information, see below.

Liquid sales volume restatement (mmbl)

Full year

2022

Liquid sales volume (old)

740.1

Liquid sales volume (new)

815.9

Average invoiced gas price restatement

(mmbtu)

Full year

2022

Average invoice gas price - Europe (old)

32.46

Realised piped gas price Europe (new)

32.84

Financial performance

Net operating income includes net effects from changes in fair value related to storage and commodity derivatives

utilised to manage

price risk exposure. During 2023, the net operating income included impairments of USD

342 million, in contrast to USD 895 million of

net impairment reversals in the prior year.

Total revenues and other income decreased from 2023 to 2022 due to lower gas and oil sales prices in both Europe and North

America and decreased gas volumes. This was partially offset by increased liquid sales.

Purchases [net of inventory] decreased from 2022 to 2023 due to lower prices for both gas

and liquids.

The increase in Operating expenses and selling, general and administrative

expenses from 2022 to 2023 was mainly due to

significant increased transportation costs for liquids and increased selling, general and administrative

expenses mainly due to

increased activity within Low Carbon Solutions.

Equinor 2023 Annual Report on Form 20-F

Depreciation, amortisation and net impairment increased from 2022 to 2023 driven by the impairment of refinery

assets in 2023 and

an impairment reversal in 2022.

The main driver for the decrease in additions to PP&E, intangibles and equity accounted investments

from 2022 to 2023 are lower

investments in projects related to onshore plants.

REN - Financial information

For the year ended 31 December

(in USD million)

2023

2022

Change

Revenues third party, other revenue and other income

127

(61%)

Net income/(loss) from equity accounted investments

(33)

N/A

Total revenues and other income

185

(91%)

Operating, selling, general and administrative expenses

(462)

(265)

74%

Depreciation, amortisation and net impairment losses

(312)

(4)

>100%

Net operating income/(loss)

(757)

(84)

>(100%)

For the year ended 31 December

Operational information

2023

2022

Change

Renewables power generation (GWh) Equinor

1,859

1,641

13%

Financial Performance

European offshore wind assets in operation within the equity accounted investment portfolio decreased in revenue contribution

26% within net income/(loss) from equity accounted investments in 2023. This decline was

due to lower prices experienced in 2023,

increased maintenance costs and increased expenditure associated with early phase projects.

Added revenue from the newly acquired onshore wind farm in Brazil and the start-up of production at solar

plants in Poland

contributed positively to total revenues in 2023. Combined with the decreased results from

equity accounted investments in 2023, total

revenues and other income decreased relative to 2022. Favourable effects of divestments early in 2022 significantly

impacted the

decline.

The notable decrease in net operating income for 2023 compared to the prior year was primarily

due to the recognition of a USD 300

million impairment in the third quarter for offshore wind projects in the US Northeast following the

rejection of petitions related to

offtake agreements. In addition, increased business development expenditures and increased operating activity levels contributed

an upward trend in operating and administrative expenses in 2023. The increased costs associated

with maturing projects, which

predominantly originated from offshore wind activities in the UK and Asia, contributed to the reduction in adjusted

earnings* in 2023

compared to 2022.

The acquisitions of BeGreen and Rio Energy in the year drove the increase in additions to PP&E,

intangibles and equity accounted

investments compared to 2022.

Equinor 2023 Annual Report on Form 20-F

Liquidity and capital resources

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

●

Debt and liquidity management in Section 2.1 of Chapter 2 on pages

43 – 44, excluding the information in the

second and sixth paragraphs under the sub-heading “Debt and Credit Rating”;

●

Capital management and distribution in Section 2.1 of Chapter 2 on page 41;

●

Capital distribution in Section 2.1 of Chapter 2 on page 41;

●

Review of cash flows in Section 2.1 of Chapter 2 on pages 41 – 42;

●

Balance sheet and financial indicators in Section 2.1 of Chapter 2 on pages 44 – 46; and

●

Investments in Section 2.2 of Chapter 2 on page 98.

Any credit rating referred to in this 2023 Form 20-F is not a recommendation to buy, hold or sell any of our or our subsidiaries’

securities. Credit ratings may be changed, suspended or withdrawn at any time, and each rating

should be evaluated independently of

any other rating.

Following Equinor’s transition from London Inter-bank Offered Rates (LIBOR) to the new official alternative reference rates,

Equinor generally follows guidelines from ISDA and ICMA (International Capital Markets Association).

See also notes 18 Trade and other receivables, 19 Cash and cash equivalents, 21 Finance debt, 23 Provisions

and other

liabilities, 24 Trade and other payables and provisions, 25 Leases, and 26 Other commitments, contingent liabilities and contingent

assets to the Consolidated financial statements.

Principal contractual obligations

The following table summarises principal contractual obligations, excluding derivatives and other hedging instruments,

as well as

asset retirement obligations which for the most part are expected to lead to cash disbursements

more than five years into the future.

See note 23 Provisions and other liabilities

to the Consolidated financial statements

for a maturity profile on asset retirement obligations

and other provisions.

Non-current finance debt in the following table represents principal payment obligations, including

interest obligations. Obligations

payable by Equinor to entities accounted for in the Equinor group using the equity method

are included in the table below with

Equinor’s full proportionate share. For assets that are included in the Equinor

accounts through joint operations or similar

arrangements, the amounts in the table include the net commitment payable by Equinor (i.e., Equinor’s

proportionate share of the

commitment less Equinor's ownership share in the applicable entity).

Principal contractual obligations

As at 31 December 2023

Payment due by period

(in USD million)

Less than 1

year

1-3 years

3-5 years

More than 5

years

Total

Undiscounted non-current finance debt- principal and interest

2,948

6,035

5,601

17,597

32,181

Undiscounted leases

1,369

1,434

496

477

3,775

Nominal minimum other long-term commitments

2,659

3,587

2,197

6,775

15,218

Total contractual obligations

6,975

11,056

8,294

24,850

51,175

''Less than 1 year'' represents 2024; ''1-3 years''

represents 2025 and 2026, ''3-5 years'' represents

2027 and 2028, while ''More than 5

years'' includes amounts for later periods.

See note 21 Finance debt to the Consolidated

financial statements. The main differences between the table

and the note relate to

interest.

See note 4 Financial risk management to the Consolidated

financial statements.

See note 26 Other commitments and contingencies

to the Consolidated financial statements.

Equinor had contractual commitments of USD 11,259 million at 31 December 2023. The contractual commitments reflect Equinor's

share and mainly comprise construction and acquisition of property, plant and equipmentas well as committed investments/funding or

resources in equity accounted entities.

Equinor 2023 Annual Report on Form 20-F

Equinor’s projected pension benefit obligation was USD 8,328 million, and the fair value

of plan assets amounted to USD 5,664 million

as of 31 December 2023. The company’s payments regarding these benefit plans are mainly related to employees

in Norway. See

note 22 Pensions to the Consolidated financial statements for more information.

Off balance sheet arrangements

Equinor is party to various agreements such as transportation and processing capacity contracts, that are

not recognised in the

balance sheet. Furthermore, Equinor is lessee in a range of lease contracts, whereas

all leases shall be recognised in the balance

sheet. Commitments regarding the non-lease components of lease contracts as well as leases

that have not yet commenced are not

recognised in the balance sheet and represent off balance sheet commitments. Equinor is also party to certain guarantees,

commitments and contingencies that, pursuant to IFRS Accounting Standards, are not necessarily recognised

in the balance sheet as

liabilities. See note 26 Other commitments and contingencies

to the Consolidated financial statements for more information.

Equinor 2023 Annual Report on Form 20-F

Summarised financial information related to guaranteed debt securities

The following summarised financial information provides financial information of Equinor Energy AS

as co-obligor and guarantor

as required by SEC Rule 3-10 and 13-01 of Regulation S-X.

Equinor Energy AS is a 100% owned subsidiary of Equinor ASA. Equinor Energy AS is the

co-obligor of certain existing debt

securities of Equinor ASA and has guaranteed certain existing debt securities of Equinor ASA,

including in each case debt securities

that are registered under the US Securities Act of 1933 ("US registered debt securities").

As co-obligor, Equinor Energy AS fully, unconditionally and irrevocably assumes and agrees to perform, jointly and severally with

Equinor ASA, the payment and covenant obligations for certain debt held by Equinor ASA. As

a guarantor, Equinor Energy AS fully

and unconditionally guarantees the payment obligations for certain debt held by Equinor ASA. Total debt at 31 December 2023 is

USD 24,442 million, all of which is either guaranteed by Equinor Energy AS (USD 22,611 million), or for which Equinor Energy AS is

co-obligor (USD 1,831 million). In the future, Equinor ASA may from time to time issue

debt for which Equinor Energy AS will be the

co-obligor or guarantor.

The applicable US registered debt securities and related guarantees of Equinor Energy AS are

unsecured and rank equally with all

other unsecured and unsubordinated indebtedness of Equinor ASA and Equinor Energy AS. The

guarantees of Equinor Energy AS

are subject to release in limited circumstances upon the occurrence of certain customary conditions.

With respect to US registered

debt securities (and certain other debt securities) issued on or after 18 November 2019, Equinor

Energy AS will automatically and

unconditionally be released from all obligations under its guarantee and the guarantee shall

thereupon terminate and be discharged of

no further force or effect, in the event that at substantially the same time as its guarantee of such

debt securities is terminated, the

aggregate amount of indebtedness for borrowed money for which Equinor Energy AS is

an obligor (as a guarantor, co-issuer or

borrower) does not exceed 10% of the aggregate principal amount of indebtedness for borrowed

money of Equinor ASA and its

subsidiaries, on a consolidated basis, as of such time.

Internal dividends, group contributions and repayment of capital from Equinor Energy AS to Equinor

ASA are regulated in the

Norwegian Public Limited Liabilities Act §§ 3-1 - 3-5.

The following summarised financial information for the year ended 31 December 2023 provides

financial information about Equinor

ASA, as issuer, and Equinor Energy AS, as co-obligor and guarantor on a combined basis after elimination of transactions between

Equinor ASA and Equinor Energy AS. Investments in non-guarantor subsidiaries are eliminated.

Currency gain on transactions

between Equinor ASA and Equinor Energy AS of USD 1,939 million is included in

financial items in accordance with the IFRS

Accounting Standards group principles and are included in external items in the Condensed

profit and loss statement.

Intercompany balances and transactions between the obligor group and the non-guarantor subsidiaries are

presented on separate

lines. Transactions with related parties are also presented on a separate line item and include transactions with the

Norwegian State's

and the Norwegian State’s share of dividend declared but not paid.

The combined summarized financial information is prepared in accordance with Equinor's IFRS Accounting

Standards policies as

described in note 2 Significant accounting policies to the Consolidated financial statements.

Equinor 2023 Annual Report on Form 20-F

COMBINED PROFIT AND LOSS STATEMENT FOR EQUINOR ASA AND EQUINOR ENERGY AS

Full year 2023

(unaudited, in USD million)

Revenues and other income

87,627

External

84,213

Non-guarantor subsidiaries

3,218

Related parties

196

Operating expenses

(53,687)

External (incl depreciation)

(27,343)

Non-guarantor subsidiaries

(15,164)

Related parties

(11,180)

Net operating income

33,940

Net financial items

2,613

External

713

Non-guarantor subsidiaries

1,900

Related parties

Income before tax

36,553

Income tax

(24,668)

Net income

11,885

COMBINED BALANCE SHEET FOR EQUINOR ASA AND EQUINOR ENERGY

At 31 December

(unaudited, in USD million)

2023

Non-current assets

43,867

External

35,595

Non-guarantor subsidiaries

8,221

Related parties

Current assets

56,978

External

48,189

Non-guarantor subsidiaries

8,209

Related parties

580

Non-current liabilities

51,802

External

51,342

Non-guarantor subsidiaries

126

Related parties

334

Current liabilities

48,362

External

27,103

Non-guarantor subsidiaries

19,323

Related parties

1,936

Use and reconciliation of non-GAAP financial measures

Equinor 2023 Annual Report on Form 20-F

Since 2007, Equinor has been preparing its audited consolidated financial statements in accordance

with International Financial

Reporting Standards (IFRS Accounting Standards) as adopted by the European Union (EU) and

as issued by the International

Accounting Standards Board. IFRS Accounting Standards have been applied consistently to

all periods in our audited consolidated

financial statements as of 31 December 2023 and 2022, and for the three years ended 31 December

2023 included in this 2023 Form

20-F (the “Consolidated financial statements”).

Non-GAAP financial measures are defined as numerical measures that either exclude or include

amounts that are not excluded or

included in the comparable measures calculated and presented in accordance with generally accepted

accounting principles: (i.e,

IFRS Accounting Standards in the case of Equinor). The following financial measures included

in this 2023 Form 20-F may be

considered non-GAAP financial measures:

Net debt to capital employed ratio, Net debt to capital employed ratio adjusted, including lease liabilities

and Net debt to capital

employed ratio adjusted

Return on average capital employed (ROACE)

Organic capital expenditures

Gross capital expenditure (gross capex)

Cash flows from operations after taxes paid (CFFO after taxes paid)

Net cash flow (previously named Free cash flow)

Adjusted earnings and adjusted earnings after tax

a) Net debt to capital employed ratio

In Equinor’s view, net debt ratios provide a more informative picture of Equinor’s financial strength than gross interest-bearing

financial

debt.

Three different net debt to capital ratios are provided below: 1) net debt to capital employed, 2) net debt

to capital employed ratio

adjusted, including lease liabilities, and 3) net debt to capital employed ratio adjusted.

These calculations are all based on Equinor’s gross interest-bearing financial

liabilities as recorded in the Consolidated balance sheet

and exclude cash, cash equivalents and current financial investments.

The following adjustments are made in calculating the net debt to capital employed ratio adjusted,

including lease liabilities and the

net debt to capital employed ratio adjusted: collateral deposits (classified as Cash and cash equivalents

in the Consolidated balance

sheet), and financial investments held in Equinor Insurance AS (classified as Current financial

investments in the Consolidated

balance sheet) are treated as non-cash and excluded from the calculation of these non-GAAP

measures. Collateral deposits are

excluded since they relate to certain requirements of exchanges where Equinor’s securities are trading and therefore are presented

restricted cash and cash equivalents. Financial investments in Equinor Insurance are excluded

as these investments are not readily

available for the group to meet short term commitments. These adjustments result in a higher net

debt figure and in Equinor’s view

provides a more prudent measure of the net debt to capital employed ratio than would be the case without

such exclusions.

Additionally, lease liabilities are further excluded in calculating the net debt to capital employed ratio adjusted.

The accompanying table details the calculations for these non-GAAP measures and reconciles

them with the most directly

comparable IFRS Accounting Standards financial measure or measures.

Forward-looking net debt to capital employed ratio adjusted, including lease liabilities included in

this 2023 Form 20-F is not

reconcilable to its most directly comparable IFRS Accounting Standards measure without unreasonable

efforts, because the amounts

excluded from IFRS Accounting Standards measures used to determine net debt to capital employed ratio

adjusted, including lease

liabilities cannot be predicted with reasonable certainty.

Calculation of capital employed and net debt to capital

employed ratio

For the year ended 31

December

(in USD million)

2023

2022

Shareholders' equity

48,490

53,988

Non-controlling interests

Total equity

48,500

53,989

Current finance debt and lease liabilities

7,275

5,617

Non-current finance debt and lease liabilities

24,521

26,551

Equinor 2023 Annual Report on Form 20-F

Gross interest-bearing debt

31,796

32,168

Cash and cash equivalents

9,641

15,579

Current financial investments

29,224

29,876

Cash and cash equivalents and current financial investment

38,865

45,455

Net interest-bearing debt before adjustments

B1 = B-C

(7,069)

(13,288)

Other interest-bearing elements

2,030

6,538

Net interest-bearing debt adjusted, including lease

liabilities

(5,040)

(6,750)

Lease liabilities

3,570

3,668

Net interest-bearing debt adjusted

(8,610)

(10,418)

Calculation of capital employed:

Capital employed

A+B1

41,431

40,701

Capital employed adjusted, including lease liabilities

A+B2

43,460

47,239

Capital employed adjusted

A+B3

39,890

43,571

Calculated net debt to capital employed

Net debt to capital employed

(B1)/(A+B1)

(17.1%)

(32.6%)

Net debt to capital employed ratio adjusted, including lease

liabilities

(B2)/(A+B2)

(11.6%)

(14.3%)

Net debt to capital employed ratio adjusted

(B3)/(A+B3)

(21.6%)

(23.9%)

The following adjustments are made in calculating the

net debt to capital employed adjusted, including

lease liabilities ratio and the net

debt to capital employed adjusted ratio: collateral deposits

(classified as Cash and cash equivalents

in the Consolidated balance sheet),

and financial investments held in Equinor Insurance

AS (classified as Current financial investments in

the Consolidated balance sheet) are

treated as non-cash and excluded from the calculation

of these non-GAAP measures. Collateral deposits

are excluded since they relate to

certain requirements of exchanges where Equinor

is trading and presented as restricted

cash and cash equivalents. Financial investments

in Equinor Insurance are excluded as these investments

are not readily available for the group to meet short

term commitments. These

adjustments result in a higher net debt figure and

in Equinor’s view provides a more

prudent measure of the net debt to capital employed

ratio than would be the case without such exclusions.

Equinor 2023 Annual Report on Form 20-F

b) Return on average capital employed (ROACE)

Return on average capital employed (ROACE) is the ratio of adjusted earnings after tax to

the average capital employed adjusted.

The reconciliation for adjusted earnings after tax is presented in section g). Average capital employed adjusted

refers to the average

of the capital employed adjusted values as of 31 December for both the current and

the preceding year, as presented under the

heading Calculation of capital employed in section a).

Equinor uses ROACE to evaluate performance by measuring how effectively the company employs its capital, whether

financed

through equity or debt.

An IFRS Accounting Standards measure most directly comparable to ROACE would be

calculated as the ratio of net income/(loss) to

average capital employed that is based on Equinor’s gross interest-bearing financial liabilities

as recorded in the Consolidated balance

sheet, excluding cash, cash equivalents and current financial investments.

ROACE is used as a supplementary measure and should not be viewed in isolation or as

an alternative to measures calculated in

accordance with IFRS Accounting Standards including income before financial items, income taxes

and minority interest, or net

income, or ratios based on these figures.

Calculated ROACE based on IFRS Accounting Standards

31 December

(in USD million, except percentages)

2023

2022

Net income/(loss)

11,904

28,744

Average total equity

51,244

46,506

Average current finance debt and lease liabilities

6,446

6,001

Average non-current finance debt and lease liabilities

25,536

28,202

- Average cash and cash equivalents

(12,610)

(14,853)

- Average current financial investments

(29,550)

(25,561)

Average net-interest bearing debt

(10,178)

(6,210)

Average capital employed

B = 1+2

41,066

40,296

Calculated ROACE based on Net income/loss and

capital employed

A/B

29.0%

71.3%

Calculated ROACE based on Adjusted earnings after

tax and capital employed adjusted

31 December

(in USD million, except percentages)

2023

2022

Adjusted earnings after tax

10,371

22,680

Average capital employed adjusted

41,731

41,134

Calculated ROACE based on Adjusted earnings

after tax and capital employed adjusted

A/B

24.9%

55.1%

Forward-looking ROACE included in this 2023 Form 20-F is not reconcilable to its most directly

comparable IFRS Accounting

Standards measure without unreasonable efforts, because the amounts included or excluded from IFRS Accounting

Standards

measures used to determine ROACE cannot be predicted with reasonable certainty.

Equinor 2023 Annual Report on Form 20-F

c) Organic capital expenditures

Organic capital expenditures represent additions to PP&E, intangibles and equity accounted investments,

excluding expenditures

related to acquisitions, leased assets, and other investments with significantly different cash flow patterns. Equinor believes this

measure gives stakeholders relevant information to understand the company’s investments in maintaining and

developing its existing

business operations.

Calculation of organic capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to PP&E, intangibles and equity accounted investments

14.5

10.0

Acquisition-related additions

(3.2)

(0.6)

Right of use asset additions

(1.1)

(1.3)

Other additions (with unique cash flow patterns)

Organic capital expenditures

10.2

8.1

Forward-looking organic capital expenditures included in this 2023 Form 20-F are not reconcilable to the most

directly comparable

IFRS Accounting Standards measure without unreasonable efforts, because the amounts excluded from such IFRS Accounting

Standards measure to determine organic capital expenditures cannot be predicted with reasonable

certainty.

d) Gross capital expenditures

(Gross capex)

Gross capital expenditures represent capital expenditures, defined as Additions to PP&E, intangibles

and equity accounted

investments as presented in the financial statements, excluding additions to right of use assets

related to leases and capital

expenditures financed through government grants. Equinor adds the proportionate share of capital

expenditures in equity accounted

investments not included in Additions to PP&E, intangibles and equity accounted investments.

Equinor believes that by excluding

additions to right of use assets related to leases, this measure better reflects the company's

investments in the business to drive

growth.

Calculation of gross capital expenditures

For the year ended 31

December

(in USD billion)

2023

2022

Additions to Property, plant and equipment, Intangibles and Equity accounted companies

14.5

10.0

Less adjustments

0.4

Gross capital expenditures

14.1

9.6

Forward-looking gross capital expenditures included in this 2023 Form 20-F are not reconcilable to the

most directly comparable IFRS

Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from such IFRS Accounting

Standards measure to determine gross capital expenditures cannot be predicted with reasonable certainty.

Equinor 2023 Annual Report on Form 20-F

e) Cash flows from operations after taxes paid (CFFO after

taxes paid)

Cash flows from operations after taxes paid represents, and is used by management to

evaluate, cash generated from operating

activities after taxes paid, which is available for investing activities, for debt servicing and for distribution

to shareholders. Cash flows

from operations after taxes paid is not a measure of our liquidity under IFRS Accounting Standards

and should not be considered in

isolation or as a substitute for an analysis of our results as reported in this 2023 Form

20-F. Our definition of Cash flows from

operations after taxes paid is limited and does not represent residual cash flows available for

discretionary expenditures.

The table below provides a reconciliation of Cash flows from operations after taxes paid to its most

directly comparable IFRS

Accounting Standards measure, Cash flows provided by operating activities before taxes paid

and working capital items, as of the

specified dates:

Cash flow from operations after taxes paid (CFFO after taxes paid)

(in USD million)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

48,016

83,608

Taxes paid

(28,276)

(43,856)

Cash flow from operations after taxes paid (CFFO after taxes paid)

19,741

39,752

Forward-looking cash flows from operations after taxes paid included in this 2023 Form 20-F is not reconcilable

to its most directly

comparable IFRS Accounting Standards measure without unreasonable efforts, because the amounts included or excluded from

IFRS

Accounting Standards measures used to determine cash flows from operations after taxes paid

cannot be predicted with reasonable

certainty.

f) Net cash flow (previously named Free cash flow)

Net cash flow represents, and is used by management to evaluate, cash generated from

operational and investing activities available

for debt servicing and distribution to shareholders. The measure underwent a name change

in 2023; however, all other aspects of the

measure remain unchanged. Net cash flow is not a measure of our liquidity under IFRS Accounting

Standards and should not be

considered in isolation or as a substitute for an analysis of our results as reported in this 2023 Form

20-F.

Our definition of Net cash

flow is limited and does not represent residual cash flows available for discretionary expenditures.

The table below reconciles Net cash flow with its most directly comparable IFRS Accounting Standards

measure, Cash flows provided

by operating activities before taxes paid and working capital items, as of the specified dates:

Net cash flow

(in USD billion)

2023

2022

Cash flows provided by operating activities before taxes paid and working capital items

48.0

83.6

Taxes paid

(28.3)

(43.9)

Cash used/received in business combinations

(1.2)

0.1

Capital expenditures and investments

(10.6)

(8.8)

(Increase)/decrease in other interest-bearing items

(0.1)

(0.0)

Proceeds from sale of assets and businesses

0.3

1.0

Net cash flow before capital distribution

8.2

32.1

Dividends paid

(10.9)

(5.4)

Share buy-back

(5.6)

(3.3)

Net cash flow

(8.3)

23.4

Equinor 2023 Annual Report on Form 20-F

g) Adjusted earnings and adjusted earnings after tax

Adjusted earnings

are based on net operating income/(loss) and adjusts for certain items affecting the income for the period in

order

to separate out effects that management considers may not be well correlated to Equinor’s

underlying operational performance in the

individual reporting period. Management believes adjusted earnings provides an indication

of Equinor’s underlying operational

performance in the period and facilitates comparison of operational trends between periods. The

calculation of Adjusted earnings was

changed in 2023, as detailed below.

Adjusted earnings after tax

equals the sum of net operating income/(loss) less income tax in reporting segments and includes

adjustments to operating income to take the applicable marginal tax into consideration.

Adjusted earnings after tax excludes net

financial items and the associated tax effects on net financial items. It is based on adjusted earnings less the

tax effects on all

elements included in adjusted earnings (or calculated tax on operating income and

on each of the adjusting items using an estimated

marginal tax rate). In addition, tax effects related to tax exposure items not related to the individual reporting

period are excluded from

adjusted earnings after tax. Management believes adjusted earnings after tax provides an indication

of Equinor’s underlying

operational performance and facilitates comparisons of operational trends between periods as it reflects the

tax charge associated

with operational performance excluding the impact of financing. Certain net USD denominated

financial positions are held by group

companies that have a USD functional currency that is different from the currency in which the taxable income

is measured. As

currency exchange rates change between periods, the basis for measuring net financial

items for IFRS Accounting Standards will

change disproportionally with taxable income which includes exchange gains and losses

from translating the net USD denominated

financial positions into the currency of the applicable tax return. Therefore, the effective tax rate may be significantly higher or lower

than the statutory tax rate for any given period. Adjusted taxes included in adjusted

earnings after tax should not be considered

indicative of the amount of current or total tax expense (or taxes payable) for the period.

Adjusted earnings and adjusted earnings after tax are supplementary measures and should not

be viewed in isolation or as

substitutes for net operating income/(loss) and net income/(loss), which are the most directly

comparable IFRS Accounting Standards

measures. There are material limitations associated with the use of adjusted earnings

and adjusted earnings after tax compared with

the IFRS Accounting Standards measures as these non-GAAP measures do not include

all the items of revenues/gains or

expenses/losses of Equinor that are needed to evaluate its profitability on an overall basis. Adjusted

earnings and adjusted earnings

after tax are only intended to be indicative of the underlying developments in trends of our ongoing

operations for the production,

manufacturing and marketing of our products and exclude pre- and post-tax impacts of net financial items. Equinor

reflects such

underlying developments in our operations by eliminating the effects of certain items that may not be directly

associated with the

period's operations or financing. However, for that reason, adjusted earnings and adjusted earnings after tax are not complete

measures of profitability and should therefore not be used in isolation.

Amended principles for Adjusted earnings with effect from 2023:

Equinor has made the following changes to the items adjusted for within Adjusted earnings:

●

With effect from 2023, movements in the fair value of commodity derivatives used to manage price risk

exposure of future

sale and purchase contracts are excluded from adjusted earnings and deferred until the time of the

physical delivery. This

change minimises the effects of timing differences and presents a measure more indicative of underlying economic

performance.

●

With effect from 2023, the principle used to adjust the valuation of commercial storages is based on the forward price

at the

expected realisation date. Prior to this amendment, the valuation adjustment was based on

short-term forward prices which,

for some storages, did not correspond to the forward price at the expected realisation date. This

change brings the valuation

principle in line with how the corresponding derivative contract used to manage price exposure

is valued.

These changes have been applied retrospectively to the comparative figures. The majority of the

impact is due to the revised

treatment of commodity derivatives. These changes only affect the MMP reporting segment and currently do not

have an impact on

other segments. Equinor deems that these changes lead to a better representation of

performance in each period by appropriately

reflecting the economic impact of its risk management activities.

For further information on Adjusted earnings, see note 28 Financial instruments and fair value

measurement to the Consolidated

financial statements.

Impact of change

Full year of 2022

MMP segment

As reported

Impact

Restated

Change in Fair Value of derivatives

(149)

1,801

1,651

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

147,599

1,981

149,580

Adjusted earnings/(loss)

2,253

1,981

4,234

Equinor 2023 Annual Report on Form 20-F

Adjusted earnings/(loss) after tax

2,727

(10)

2,717

Impact of change

Full year of 2022

Equinor group

As reported

Impact

Restated

Change in Fair Value of derivatives

(207)

1,801

1,593

Periodisation of inventory hedging effect

(349)

181

(168)

Adjusted total revenues and other income

149,910

1,981

151,891

Adjusted earnings/(loss)

74,940

1,981

76,921

Adjusted earnings/(loss) after tax

22,691

(10)

22,680

Effective tax rates on adjusted earnings

69.7%

0.8%

70.5%

No other line items or segments were affected by the

change.

Adjusted earnings adjust for the following items:

●

Changes in fair value of derivatives

: In the ordinary course of business, Equinor enters into commodity derivative

contracts to

manage the price risk exposure relating to future sale and purchase contracts. These commodity

derivatives are measured at fair

value at each reporting date, with the movements in fair value recognised in the income

statement. By contrast, the sale and

purchase contracts are not recognised until the transaction occurs resulting in timing

differences. Therefore, with effect from

2023, the unrealised movements in the fair value of these commodity derivative contracts

are excluded from adjusted earnings

and deferred until the time of the physical delivery to minimise the effect of these timing differences. Further, embedded

derivatives within certain gas contracts and contingent consideration related to historical divestments

are carried at fair value.

Any accounting impacts resulting from such changes in fair value are also excluded from

adjusted earnings, as these fluctuations

are not indicative of the underlying performance of the business.

●

Periodisation of inventory hedging effect:

Equinor enters into derivative contracts to manage price risk exposure relating to its

commercial storage. These derivative contracts are carried at fair value while the inventories are accounted

for at the lower of

cost or market price. An adjustment is made to align the valuation principles of inventories with

related derivative contracts. With

effect from 2023, the adjusted valuation of inventories is based on the forward price at the expected realisation

date. This is so

that the valuation principles between commercial storages and derivative contracts are better aligned.

●

Over/underlift

: Over/underlift is accounted for using the sales method and therefore revenues are reflected

in the period the

product is sold rather than in the period it is produced. The over/underlift position depends

on a number of factors related to our

lifting programme and the way it corresponds to our entitlement share of production. The effect on income for the

period is

therefore adjusted to show estimated revenues and associated costs based upon the production for

the period to reflect

operational performance.

●

The

operational storage

is not hedged and is not part of the trading portfolio. Cost of goods sold is measured

based on the

FIFO (first-in, first-out) method, and includes realised gains or losses that arise due to

changes in market prices. These gains or

losses will fluctuate from one period to another and are not considered part of the underlying

operations for the period.

●

Impairment and reversal of impairment

are excluded from adjusted earnings since they affect the economics of an asset for

the lifetime of that asset, not only the period in which it is impaired or the

impairment is reversed. Impairment and reversal of

impairment can impact both the exploration expenses and the depreciation, amortisation and net impairments

line items.

●

Gain or loss from sales of assets

is eliminated from the measure since the gain or loss does not give an indication

of future

performance or periodic performance; such a gain or loss is related to the cumulative value creation

from the time the asset is

acquired until it is sold.

●

Eliminations (internal unrealised profit on inventories):

Volumes derived from equity oil inventory vary depending on several

factors and inventory strategies, i.e. level of crude oil in inventory, equity oil used in the refining process and level of in-transit

cargoes. Internal profit related to volumes sold between entities within the group and still in inventory

at period end is eliminated

according to IFRS Accounting Standards (write down to production cost). The proportion of realised

versus unrealised gain

fluctuates from one period to another due to inventory strategies and consequently impacts

net operating income/(loss). Write

down to production cost is not assessed to be a part of the underlying operational performance,

and elimination of internal profit

related to equity volumes is excluded in adjusted earnings.

●

Other items of income and expense

are adjusted when the impacts on income in the period are not reflective of Equinor’s

underlying operational performance in the reporting period. Such items may be unusual

or infrequent transactions, but they may

also include transactions that are significant which would not necessarily qualify as either

unusual or infrequent. However, other

items adjusted do not constitute normal, recurring income and operating expenses for the company. Other items are carefully

assessed and can include transactions such as provisions related to reorganisation, early retirement,

etc.

●

Change in accounting policy

are adjusted when the impacts on income in the period are unusual or infrequent,

and not

reflective of Equinor’s underlying operational performance in the reporting

period.

Equinor 2023 Annual Report on Form 20-F

Items impacting net operating income/(loss) in the

full year of 2023

Equinor

group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues

and other income

107,174

38,340

7,032

4,319

105,908

(48,442)

Adjusting items

(1,303)

(128)

(76)

(32)

(1,049)

(17)

(1)

Changes in fair value of derivatives

(711)

128

(96)

(743)

Periodisation of inventory hedging effect

(183)

Impairment from associated companies

Over-/underlift

(35)

Other adjustments

(100)

Gain/loss on sale of assets

(319)

(221)

(25)

(32)

(23)

(17)

(1)

Adjusted total revenues and other income

105,871

38,213

6,956

4,286

104,860

(0)

(48,443)

Purchases [net of inventory variation]

(48,175)

(0)

(70)

(95,769)

47,664

Adjusting items

173

137

Operational storage effects

Provisions

(5)

Eliminations

137

Adjusted purchases [net of inventory variation]

(48,003)

(0)

(70)

(95,733)

47,801

Operating and administrative expenses

(11,800)

(3,759)

(2,176)

(1,178)

(4,916)

(462)

692

Adjusting items

260

261

(72)

Over-/underlift

(22)

Other adjustments

Gain/loss on sale of assets

289

283

Provisions

(72)

Adjusted operating and administrative expenses

(11,540)

(3,730)

(1,915)

(1,156)

(4,988)

(442)

692

Depreciation, amortisation and net impairments

(10,634)

(5,017)

(2,433)

(1,489)

(1,239)

(312)

(143)

Adjusting items

1,259

588

310

(290)

343

300

Impairment

1,550

588

310

343

300

Reversal of impairment

(290)

Adjusted depreciation, amortisation and net

impairments

(9,374)

(4,429)

(2,123)

(1,779)

(897)

(12)

(134)

Exploration expenses

(795)

(476)

(20)

(299)

Adjusting items

Impairment

Adjusted exploration expenses

(734)

(476)

(274)

Net operating income/(loss)

35,770

29,087

2,332

1,353

3,984

(757)

(229)

Sum of adjusting items

451

490

532

(277)

(742)

303

145

Adjusted earnings/(loss)

36,220

29,577

2,863

1,076

3,242

(454)

(84)

Tax on adjusted

earnings

(25,850)

(23,083)

(1,213)

(304)

(1,364)

Adjusted earnings/(loss) after tax

10,371

6,494

1,650

773

1,877

(391)

(33)

Equinor 2023 Annual Report on Form 20-F

Items impacting net operating income/(loss) in the

full year of 2022

Equinor group

Exploration

Production

Norway

Exploration

Production

Internationa

Exploration

Production

USA

Marketing,

Midstream

Processing

Rene-

wables

Other

(in USD million)

Total revenues

and other income

150,806

75,930

7,431

5,523

148,105

185

(86,367)

Adjusting Items

1,085

(487)

185

1,475

(110)

Changes in fair value of derivatives

1,593

(263)

205

1,651

Periodisation of inventory hedging effect

(168)

Impairment from associated companies

Over-/underlift

510

507

Other adjustments

(0)

(22)

Gain/loss on sale of assets

(850)

(731)

(9)

(111)

(0)

Adjusted total revenues and other income

151,891

75,443

7,616

5,523

149,580

(86,345)

Purchases [net of inventory variation]

(53,806)

(116)

(0)

(139,916)

86,227

Adjusting Items

(610)

(33)

(577)

Operational storage effects

(33)

Eliminations

(577)

Adjusted purchases [net of inventory variation]

(54,415)

(116)

(0)

(139,949)

85,650

Operating and administrative expenses

(10,593)

(3,782)

(1,698)

(938)

(4,591)

(265)

681

Adjusting Items

(54)

Over-/underlift

(41)

(54)

Change in accounting policy

Gain/loss on sale of assets

Provisions

Adjusted operating and administrative expenses

(10,530)

(3,836)

(1,675)

(933)

(4,516)

(255)

686

Depreciation, amortisation and net impairments

(6,391)

(4,167)

(1,731)

(361)

(4)

(142)

Adjusting Items

(2,488)

(819)

286

(1,060)

(895)

Impairment

1,111

1,033

Reversal of impairment

(3,598)

(821)

(747)

(1,060)

(970)

Adjusted depreciation, amortisation and net impairments

(8,879)

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

Exploration expenses

(1,205)

(366)

(638)

(201)

Adjusting Items

(11)

Impairment

Reversal of impairment

(26)

Adjusted exploration expenses

(1,146)

(361)

(573)

(212)

Net operating income/(loss)

78,811

67,614

3,248

4,022

3,612

(84)

399

Sum of adjusting items

(1,890)

(1,355)

559

(1,065)

621

(100)

(550)

Adjusted earnings/(loss)

76,921

66,260

3,806

2,957

4,234

(184)

(151)

Tax on adjusted

earnings

(54,241)

(51,373)

(1,248)

(79)

(1,517)

(38)

Adjusted earnings/(loss) after tax

22,680

14,887

2,558

2,878

2,717

(171)

(189)

1) MMP segment and Equinor group are restated due to

amended principles for adjusting items; 'changes in fair value

of derivatives' and 'periodisation of inventory

hedging

effect'.

C. Research and development, Patents and Licences, etc.

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

Equinor 2023 Annual Report on Form 20-F

●

A technology leader in Section 1.3 of Chapter 1 on page 13; and

●

Fuelling innovation in Section 2.3 of Chapter 2 on pages 119 – 121.

See also notes 9 Auditor’s remuneration and Research and development

expenditures and 12 Property, plant and equipment to

the Consolidated financial statements.

Trend information

The information set forth under the heading “

Our market perspective

” in Section 2.1 of Chapter 2 on pages 37 – 38 of the 2023

Annual Report is incorporated herein by reference. See also “Item 5. Operating and Financial

Review―A. Operating Results” of this

2023 Form 20-

Critical Accounting Estimates

Not Applicable.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Directors and Senior Management

Members of Equinor’s board of directors as of 31 December 2023:

Jon Erik Reinhardsen

Position:

Chair of the Board and chair of the Compensation and Executive Development

Committee

Term of office:

Chair of the Board of Equinor ASA since 1 September 2017. Up for

election in 2024.

Year of birth:

1956

Independent:

Yes

Other directorships:

Listed companies: Member of the Board of Oceaneering International, Inc.

Non-listed companies: Chair of the Board of Fire Security AS, OPS Solutions AS

and Baring Group AS.

Number of shares in Equinor ASA:

4,584 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Reinhardsen is a part-time senior advisor with BearingPoint Capital. Reinhardsen was the Chief Executive

Officer of

Petroleum Geo-Services (PGS) from 2008 - August 2017. PGS delivers global geophysical-

and reservoir services. In the period

2005 - 2008 Reinhardsen was President Growth, Primary Products in the international

aluminium company Alcoa Inc. with

headquarters in the US, and he was in this period based in New York. From 1983 to 2005, Reinhardsen held various positions in

the Aker Kværner group, including Group Executive Vice President of Aker Kværner ASA, Deputy

Chief Executive Officer and

Executive Vice President of Aker Kværner Oil & Gas AS in Houston and Executive Vice President in Aker Maritime

ASA.

Education:

Master’s degree in Applied Mathematics and Geophysics from the

University of Bergen. He has also attended the

International Executive Program at the Institute for Management Development (IMD) in Lausanne,

Switzerland.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Reinhardsen is a Norwegian citizen, and resident in Norway.

Anne Drinkwater

Position

: Shareholder-elected deputy chair of the board, chair of the board’s audit committee and member of the

board’s safety,

sustainability and ethics committee.

Term of office:

Deputy chair of the Board of Equinor ASA since 1 July 2022 and board member

since 1 July 2018. Up for

election in 2024.

Year of birth:

1956.

Independent:

Yes.

Other directorships:

Listed company: Non-executive member of the board of Balfour Beatty plc.

Number of shares in Equinor ASA:

1,100 (as of 31 December 2023)

Loans from Equinor ASA:

None.

Experience:

Drinkwater was employed with bp in the period 1978-2012, holding a number of different leadership positions

in the

company. In the period 2009-2012 she was chief executive officer of bp Canada. She has extensive international experience,

including being responsible for operations in the US, Norway, Indonesia, the Middle East and Africa. Through her career

Drinkwater has acquired a deep understanding of the oil and gas sector, holding both operational roles, and more distinct

business responsibilities.

Education:

Bachelor of Science in Applied Mathematics and Statistics, Brunel University London.

Equinor 2023 Annual Report on Form 20-F

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Drinkwater is a British citizen, and resident in the United States.

Rebekka Glasser Herlofsen

Position:

Shareholder-elected member of the board, the board's audit committee and the board’s compensation and executive

development committee.

Term of office

: Member of the Board of Equinor ASA since 19 March 2015. Up for election in 2024.

Year of birth:

1970

Independent:

Yes

Other directorships:

Listed companies: Member of the board of Rockwool International A/S, BW Offshore ASA and Wilh. Wilhelmsen

Holding ASA.

Non-listed companies: Chair of the board of Norwegian Hull Club (NHC) and Handelsbanken

Norge, board member of Torvald

Klaveness Group and Egmont Foundation and chair of the Council at DNV.

Number of shares in Equinor ASA:

220 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Herlofsen is an independent board member and consultant. She was previously

the Chief Financial Officer in

Wallenius Wilhelmsen ASA, an international shipping company. Before joining Wallenius Wilhelmsen, she was the Chief

Financial Officer in the shipping company Torvald Klaveness since 2012. She has broad financial and strategic experience from

several corporations and board directorships. Herlofsen’s professional career began in the Nordic Investment Bank,

Enskilda

Securities, where she worked with corporate finance from 1995 to 1999 in Oslo and London. During

the next ten years Herlofsen

worked in the Norwegian shipping company Bergesen d.y. ASA (later BW Group). During her period with Bergesen d.y. ASA/BW

Group she held leading positions within M&A, strategy and corporate planning and was

part of the group management team.

Education:

MSc in Economics and Business Administration (“Siviløkonom”) and Certified Financial

Analyst Program (AFA), the

Norwegian School of Economics (NHH). Breakthrough Program for Top Executives at IMD business school, Switzerland.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Herlofsen is a Norwegian citizen and resident in Norway.

Jonathan Lewis

Position:

Member of the Board, chair of the Board's Safety, Sustainability and Ethics Committee and member of the Board's

Audit Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2018. Up for election in

2024.

Year of birth:

1961

Independent:

Yes

Other directorships:

Listed company: Member of the Board of Capita plc.

Number of shares in Equinor ASA:

None (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Lewis was the Chief Executive Officer of Capita plc from December 2017 until January 2024,

having previously

spent 30 years working for large multi-national companies in technology-enabled industries.

Lewis came to Capita plc from Amec

Foster Wheeler plc, a global consulting, engineering and construction company, where he was CEO from 2016-2017. Prior to

this, he held a number of senior leadership positions at Halliburton, where he was employed in the

period 1996-2016. Lewis has

previously held several directorships within technology and the oil and gas industry.

Education:

Lewis has a PhD in Reservoir Characterisation, from University of Reading and a Bachelor

of Science degree in

Geology from Kingston University.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Lewis is a British and US citizen, and resident in the UK.

Finn Bjørn Ruyter

Position

: Member of the Board, the Board's Audit Committee and the Board’s Compensation and Executive

Development

Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2019.

Up for election in 2024.

Year of birth:

1964

Independent:

Yes

Other directorships:

Non-listed companies: Chair of the board of Fornybar Norge AS and board member of Cegal

in addition to several companies

fully or partly owned by Hafslund.

Number of shares in Equinor ASA:

620 (as of 31 December 2023)

Loans from Equinor ASA:

None

Equinor 2023 Annual Report on Form 20-F

Experience:

Ruyter has since July 2012 been CEO of Hafslund AS. He was CFO in the company

2010-2011. In 2009-2010 he

worked in the Philippine hydro power company SN Aboitiz Power. In the period 1996-2009 he led the power trading entity and

from 1999 also the energy division in Elkem. From 1991-1996 Ruyter worked with

energy trading in Norsk Hydro.

Education:

Master’s degree in mechanical engineering from the Norwegian

University of Technology (NTNU) and an MBA from

BI Norwegian School of Management.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Ruyter is a Norwegian citizen, and resident in Norway.

Tove Andersen

Position

: Member of the Board and the Board's Safety, Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2020.

Up for election in 2024.

Year of birth:

1970

Independent:

Yes

Other directorships:

Listed company:

Member of the board of Borregaard ASA

Non-listed company: Member of the board of The Norwegian Opera & Ballet

Number of shares in Equinor ASA:

4,700 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Andersen is President & CEO of Tomra Systems ASA as of 16 August 2021. Prior to this, she held the position as

Executive Vice President for Europe in Yara International ASA. Andersen was part of the executive management team in Yara

since 2016 where she also held positions as Executive Vice President, Production and Executive Vice President,

Supply Chain.

Previously she has had several management roles within Yara and Norsk Hydro/Yara and she started in Norsk Hydro in 1997.

She has extensive international industrial experience, and she has broad board experience.

Education:

Master of Science (Sivilingeniør) from Norwegian Institute of Technology (NTNU) and a Master of Business

Administration from the BI Norwegian Business School.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Andersen is a Norwegian citizen and resident in Norway.

Haakon Bruun-Hanssen

Position:

Member of the Board, the Board's Compensation and Executive Development Committee

and the Board's Safety,

Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 12 December 2022. Up for election

in 2024.

Year of birth:

1960

Independent:

Yes

Other directorships:

Non-listed companies: Member of the Advisory board at Kongsberg Defence & Aerospace

(KDA)

Number of shares in Equinor ASA:

None (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Bruun-Hanssen held the position as Chief of Norwegian Defence Forces from 2013-2020,

previously having held

the position as Chief Norwegian Joint Operational Headquarters from 2011-2013 and Chief Royal Norwegian Navy from 2009-

2011, Chief of staff Royal Norwegian Navy from 2007-2009 and Chief Naval Operations centre from 2003-2007. Prior to this he

has had an extensive career in the Norwegian Military.

Education:

Bruun-Hanssen has a broad education through the Norwegian Military; Petty Officer training school, Norwegian naval

Academy, Submarine Commanding officer course and Higher command course, Forsvarets Høyskole. He is also educated at

Military Command and Staff college, Instituut Defensie Leergangen in The Netherlands and has participated in work

sessions

relating to board roles and tasks at Insead In-Board Nordic Academy.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or the

Corporate Assembly.

Other matters:

Bruun-Hanssen is a Norwegian citizen, and resident in Norway.

Stig Lægreid

Position:

Employee representative member of the Board and member of the Safety, Sustainability and Ethics Committee.

Term of office:

Member of the Board of Equinor ASA since 1 July 2013. Up for election in 2025.

Year of birth:

1963

Independent:

Other board directorships:

None

Number of shares in Equinor ASA:

147 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Lægreid is now a full-time employee representative as the leader of NITO, Equinor. He has been occupied as

weight estimator for platform design from 2005 and prior to this as project engineer and

constructor for production of primary

metals. Employed in ÅSV and Norsk Hydro since 1985.

Equinor 2023 Annual Report on Form 20-F

Education:

Bachelor's degree, Mechanical Construction from OIH.

Family relations:

No family relationships to other board members, members of the Corporate Executive

Committee or the

Corporate Assembly.

Other matters:

Lægreid is a Norwegian citizen and resident in Norway.

Per Martin Labråten

Position:

Employee representative member of the Board, member of the Safety, Sustainability and Ethics Committee and

member of the Board's Compensation and Executive Development Committee.

Term of office:

Member of the Board of Equinor ASA since 8 June 2017. Up for election in

2025.

Year of birth:

1961

Independent:

Other directorships:

Labråthen is a member of the Executive Committee of the Industry Energy (IE) trade union

and holds a

number of offices as a result of this.

Number of shares in Equinor ASA:

894 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Labråthen is now a full-time employee representative as the leader of IE Equinor

branch. He has previously worked

as a process technician at the petrochemical plant on Oseberg field in the North Sea.

Education:

Labråthen has a craft certificate as a process/chemistry worker.

Family relations:

No family relations to other members of the Board, members of the Corporate

Executive Committee or

members of the Corporate Assembly.

Other matters:

Labråthen is a Norwegian citizen, and resident in Norway.

Hilde Møllerstad

Position:

Employee representative member of the Board and member of the Board's

Audit Committee.

Term of office:

Member of the Board of Directors of Equinor ASA since 1 July

2019. Up for election in 2025.

Year of birth:

1966

Independent:

Other board directorships:

Chair of Tekna’s ethical board.

Number of shares in Equinor ASA:

3,005 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Møllerstad has been employed by Equinor since 1991 and works within petroleum

technology discipline in

Exploration & Production International. Møllerstad has been a member of the Corporate Assembly

in Equinor from 2013 - 2019

and was a board member of Tekna

Private from 2012 - 2017 and she has had several trust offices in Tekna Equinor since 1993.

Education:

Chartered engineer from NTNU (Norwegian University of Science and Technology) and Project Management

Essential (PME) from BI/NTNU (Norwegian Business School BI/ Norwegian University

of Science and Technology).

Family relations:

No family relationships to other board members, members of the Corporate Executive

Committee or the

Corporate Assembly.

Other matters:

Møllerstad is a Norwegian citizen and resident in Norway

Members of Equinor's corporate executive committee as of 31 December 2023:

Anders Opedal

Position:

President and Chief Executive Officer (CEO) since 2 November 2020

Year of birth:

1968

External offices:

None

Number of shares in Equinor ASA:

56,649 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Opedal joined Equinor in 1997. From 2018-2020 he held the position as Executive

Vice President Technology,

Projects and Drilling. From August to October 2018, he was Executive Vice President for Development,

Production Brazil and

prior to this Senior Vice President for Development, Production International Brazil. He also held

the position as Equinor’s Chief

Operating Officer. In 2011

he took on the role as Senior Vice President in Technology, Projects and Drilling; where he was

responsible for Equinor’s NOK 300 billion project portfolio. From 2007-2010 he

served as Chief Procurement Officer. He has held

a range of technical, operational and leadership positions in the company and started as

a petroleum engineer in the Statfjord

operations. Prior to Equinor, Opedal worked for Schlumberger and Baker Hughes.

Education:

MBA from Heriot-Watt University and master's degree in Engineering (sivilingeniør) from the Norwegian Institute

Technology (NTH) in Trondheim.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Opedal is a Norwegian citizen and resident in Norway.

Torgrim Reitan

Position:

Executive Vice President and Chief Financial Officer since 6 October 2022

Equinor 2023 Annual Report on Form 20-F

Year of birth:

1969

External offices:

None

Number of shares in Equinor ASA:

15,482 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Reitan joined Equinor in 1995. He comes from the position of Senior Vice President for Finance

and Control in

Equinor’s Renewables business area, which he held since 2020. From 2018 - 2020 he was Executive

Vice President for

Development and production international, and from 2015 - 2018 Reitan held the position

as Executive Vice President of

Development and Production USA. Prior to this he held the position as Executive Vice President

and Chief Financial Officer from

2010 - 2015. He has held several management positions in Equinor prior to this, including Senior

Vice President in trading and

operations in the Natural gas business area in 2009 - 2010, Senior Vice President in Performance

management and analysis

from 2007 - 2009, and from 2005 - 2007 he was Senior Vice President in Performance Management, Tax and M&A. From 1995 -

2004 Reitan held various positions in the Natural Gas business area and corporate

functions.

Education:

Master of science degree from the Norwegian School of Economics and Business

administration (NHH).

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Torgrim Reitan is a Norwegian citizen and resident in Norway.

Jannicke Nilsson

Position:

Executive Vice President, Safety, Security & Sustainability (SSU) since 1 June 2021.

Year of birth:

1965

External offices:

Member of the Board of Odfjell SE and Jotun A/S.

Number of shares in Equinor ASA:

63,106 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Since joining Equinor in 1999, Nilsson has held a number of central leadership

position within operation, projects

and technology. From June 2021, Jannicke Nilsson has led the corporate function which shapes and safeguards Equinor’s efforts

on the areas of safety, security, and sustainability,

including Equinor Energy Transition Plan. Prior to this role she was Executive

Vice President and Chief Operating Officer (COO) for five years. As COO she drove Equinor’s digital

transformation and

delivered tangible results delivering on the company’s strategy. Nilsson has also been a program leader for a company-wide

efficiency programme running from 2014 – 2016.

Education:

MSc in Cybernetics and Process Automation and a BSc in Automation from

the Rogaland Regional

College/University of Stavanger.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other:

Nilsson is a Norwegian citizen and resident in Norway.

Kjetil Hove

Position:

Executive Vice President, Exploration & Production Norway (EPN) since 1 January

2021

Year of birth:

1965

External offices:

Member of the Board of Offshore Norge

Number of shares in Equinor ASA:

23,861 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Hove joined Equinor in 1991. He has held several central management positions

in Equinor. He comes from the

position of Senior Vice President Field Life Extension, which he held since January 2020. Prior to this, Hove

was Senior Vice

President for Operations Technology in Development & Production Norway. From 2000 - 2012 he worked internationally,

including as Country Manager for Equinor in Brazil for 3.5 years. Hove started his career in

1991 in Norsk Hydro within petroleum

technology holding various positions within exploration, field development and operations in Norway.

Education:

Master’s degree in petroleum engineering from Norwegian University of Science

and Technology (NTNU).

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Hove is a Norwegian citizen and resident in Norway.

Philippe François Mathieu

Position:

Executive Vice President, Exploration & Production International (EPI) since 1 January 2023

Year of birth:

1966

External offices:

None

Number of shares in Equinor ASA:

7,529 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Mathieu joined Equinor in 1995. He comes from the position of Senior Vice President Corporate

Strategy, which he

had since October 2019. Mathieu has also held the Senior Vice President position for Joint Operations Support

in Exploration and

Production Norway from 2016 – 2019, Corporate Finance from 2014 – 2016, and Business Development Midstream

Infrastructure from 2011 – 2014. Prior to the roles as Senior Vice President, Mathieu held several senior positions within

marketing and supply in commercializing gas contracts in both North Africa and Europe.

Education:

Civil Engineer degree from Ecole Nationale des Travaux Publics de l’Etat and a Master’s

degree in Economics from

Université Lumière Lyon and from University of California, Berkeley.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Philippe Mathieu is a French citizen and resident in Norway.

Equinor 2023 Annual Report on Form 20-F

Geir Tungesvik

Position:

Executive Vice President, Projects, Drilling and Procurement (PDP) since 1 May 2022

Year of birth:

1961

External offices:

None

Number of shares in Equinor ASA:

20,702 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Geir Tungesvik joined Equinor in 1985. He comes from the position as Senior Vice President Project Development.

Previously he has held central management positions in the company including the position as

Senior Vice President for Drilling

and Well, Vice President for exploration drilling, Vice President for Grane production field and Vice President for health, safety

and environment in Exploration.

Education:

Master of Science degree in petroleum from the University of Stavanger (UIS)

and Master module in strategic

management from the Norwegian Business School (BI).

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Tungesvik is a Norwegian citizen and resident in Norway.

Irene Rummelhoff

Position:

Executive Vice President, Marketing, Midstream & Processing (MMP) since 17 August 2018

Year of birth:

1967

External offices:

Member of the board of Airbus SE

Number of shares in Equinor ASA:

31,872 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Rummelhoff joined Equinor in 1991. She has held a number of management positions within international business

development, exploration, and the downstream business in Equinor. Her most recent position, which she held from June 2015,

was as Executive Vice President New Energy Solutions (NES).

Education:

Master’s degree in Petroleum geosciences from the Norwegian Institute

of Technology (NTH)

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Rummelhoff is a Norwegian citizen and resident in Norway.

Pål Eitrheim

Position:

Executive Vice President, Renewables (REN) since 17 August 2018

Year of birth:

1971

External offices:

Member of the board of the Confederation of Norwegian Enterprise (NHO) and Veidekke ASA.

Number of shares in Equinor ASA:

21,737 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Eitrheim joined Equinor in 1998. He has held a range of leadership positions in Equinor

in Azerbaijan, Washington

DC, the CEO office, corporate strategy and Brazil. In 2017 - 2018 he was Chief Procurement Officer. Between 2014 - 2017 he led

Equinor’s upstream business in Brazil. In 2013 Eitrheim led the Secretariat for

the investigation into the terrorist attack on the In

Amenas gas processing facility in Algeria.

Education:

Master's degree in Comparative Politics from the University of Bergen, Norway

and University College Dublin,

Ireland.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Eitrheim is a Norwegian citizen and resident in Norway.

Hege Skryseth

Position:

Executive Vice President and Chief Technical Officer since 1 September 2022

Year of birth:

1967

External offices:

Member of the Board of Tomra and AutoStore

Number of shares in Equinor ASA:

5,364 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Skryseth joined Equinor on 1 September 2022. She comes from the position as Executive Vice President of

Kongsberg, and President of Kongsberg Digital, a position which she held since 2013. Prior

to Kongsberg, Skryseth held various

leadership positions in international tech companies such as Microsoft and Geodata (ESRI).

Education:

Executive MBA from NHH and Bachelor from BI, college graduate from

NITH.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Skryseth is a Norwegian citizen and resident in Norway.

Siv Helen Rygh Torstensen

Position:

Executive Vice President and General Counsel, Legal & Compliance (LEG) since 1 June

2021.

Year of birth:

1970

External offices:

Deputy chair of the Council of Ethics and member of the Government Pension

Fund Global

Number of shares in Equinor ASA:

19,136 (as of 31 December 2023)

Loans from Equinor ASA:

None

Equinor 2023 Annual Report on Form 20-F

Experience:

Rygh Torstensen joined Equinor in 1998. She comes from the position of Senior Vice President and General

Counsel, which she held since 1 August 2019. Prior to that she held the position as Head

of CEO office from July 2016. From

2011 - 2016 she was Vice President Corporate in LEG. From 1998 - 2011 Rygh Torstensen

held various positions within LEG,

including as Corporate Compliance Office and Acting General Counsel. Before joining Equinor she

worked with the law firm

Cappelen & Krefting DA and as a lawyer for Stavanger municipal council.

Education:

Master of Law from the University of Bergen, Norway, and licensed as an Attorney at Law.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Rygh Torstensen is a Norwegian citizen and resident in Norway.

Jannik Lindbæk

Position:

Executive Vice President Communication since 1 March 2022

Year of birth:

1965

External offices:

None

Number of shares in Equinor ASA:

11,592 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Lindbæk joined Equinor in 2010. He was appointed Senior Vice President Communication 1 January

2021. He was

Vice President Corporate Communications Political & Public Affairs Norway from 2019-2021. Prior to this he was Equinor’s

Vice

President for communication in Brussels, before that in the CFO Global Business Services,

and as Vice President Media

Relations from 2010-2015. Before joining Equinor, Lindbæk was SVP Corporate Communication in Aker Solutions, PR manager

in Microsoft and PR consultant in BWPR and GCI Monsen.

Education:

Master’s degree in Comparative Politics from the University of Bergen

and London School of Economics.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Lindbæk is a Norwegian citizen and resident in Norway.

Aksel Stenerud

Position:

Executive Vice President, People & Organisation (PO) since 1 March 2022

Year of birth:

1963

External offices:

None

Number of shares in Equinor ASA:

11,642 (as of 31 December 2023)

Loans from Equinor ASA:

None

Experience:

Stenerud joined Equinor in 2008 and has held various leadership roles across the

company. His most recent

position, which he held from November 2021, was Vice President Employee Relations in Corporate PO.

From August 2018, he

was Vice President for PO in Exploration and Production International. He has also served as Vice President

for Exploration and

Production Norway from 2014-2018. Stenerud has had a long international career within HR

and prior to this he served as an

officer in the Norwegian Airforce.

Education:

Graduate from the Air Defense academy. Minor and Intermediate in phsycology with the Norwegian university of

science and technology in Trondheim.

Family relations:

No family relations to other members of the Corporate Executive Committee,

members of the Board or the

Corporate Assembly.

Other matters:

Stenerud is a Norwegian citizen and resident in Norway.

The information set forth in the Corporate Governance Report, section 8, under the heading “Corporate

assembly” is also

incorporated herein by reference.

Equinor 2023 Annual Report on Form 20-F

Compensation

The information set forth under the following headings of the 2021 Remuneration Policy included

as an appendix to the 2023

Remuneration Report is incorporated herein by reference:

●

Remuneration to the board of directors;

●

Remuneration to the corporate assembly; and

●

Remuneration to the CEC.

The information set forth under the following headings of the 2023 Remuneration Report is incorporated

herein by reference:

●

Overall company performance in 2023;

●

Performance-based modifiers used in calculating variable pay;

●

Summary of targets and achievement of corporate KPIs and goals forming the basis for annual

variable pay;

●

Key developments in corporate executive remuneration in 2023;

●

Derogations and deviations from remuneration policy;

●

Right to reclaim (‘malus and clawback’);

●

Remuneration and share ownership of the board of directors and corporate assembly;

●

Remuneration of the CEC;

●

Shares awarded or due to the CEC in the reported financial year;

●

Total number and value of shares held by the CEC; and

●

Performance and AVP awarded to the CEC members in the reported financial year.

See also note 22 Pensions to the Consolidated financial statements.

Board Practices

The information set forth under the following headings of the of the 2023 Annual Report is incorporated

herein by reference:

●

Governing bodies in section 1.9 of Chapter 1 on pages 26 – 28; and

●

Corporate executive committee (CEC) in section 1.9 of Chapter 1 on pages 29 –30.

The information set forth under the following headings of the 2023 Corporate Governance Report

is also incorporated herein by

reference:

●

Corporate Assembly, board of directors and corporate executive committee in Chapter 8 on pages 10 – 13; and

●

The information set forth under the heading ‘The board of directors’ committees’ in Chapter 9 on

pages 14 –16.

See also “Item 6. Directors, Senior Management and Employees—A. Directors and Senior Management”

of this 2023 Form 20-F

for more information regarding the expiration date of the current term of office of the members of our

board of directors and the period

during which our directors have served in such capacity, and the composition of the board of directors’ committees.

Employees

The information set forth under the following headings of the 2023 Annual Report is incorporated

herein by reference:

●

Contextual introduction and Management approach in Section 2.2 of Chapter 2 on

pages 82 – 84;

●

The table entitled ‘Employment’ in Section 2.2 of Chapter 2 on page 87; and

●

The table entitled ‘Employment and recruitment’ in Section 2.2 of Chapter 2 on page 85;

The following table show a breakdown of total workforce by region and employment type.

Equinor 2023 Annual Report on Form 20-F

Total workforce by region and employment type in the Equinor group in 2023

as of 31 December 2023

Geographic location

Permanent

employees

Consultants

Total

workforce

Consultants (%)

Norway

20,231

939

21,170

Rest of Europe

1,440

1,482

Africa

Asia

114

128

North America

733

797

South America

865

914

Australia

Total

23,449

1,115

24,564

Non - OECD

1,018

1,086

1) Contractor personnel, defined as third-party service provides who work at our onshore and offshore

operations, are not included.

Share Ownership

The information set forth under the following headings of the 2023 Remuneration Report is incorporated

herein by reference:

●

Total number and value of shares held by the members of the board of directors;

●

Shares held by the members of the corporate assembly; and

●

Total number and value of shares held by the CEC.

Disclosure of a registrant’s action to recover erroneously awarded compensation

Not applicable.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Major shareholders

The information set forth under the heading “

Major shareholders

” in Section 5.1 of Chapter 5 on pages 260 – 261 of the 2023

Annual Report is incorporated herein by reference.

Related Party Transactions

As part of its general loan arrangement for Equinor employees, Equinor has granted

loans to Equinor-employed spouses of

certain members of the corporate executive committee. Permanent employees in specified

employee categories may take out a car

loan from Equinor in accordance with standardised provisions set by the company. The standard maximum car loan is limited to the

cost of the car, including registration fees, but not exceeding NOK 400,000. Employees outside the collective labour area are entitled

to a car loan up to NOK 600,000 (managers) or NOK 700,000 (vice presidents and senior vice presidents).

The car loan is interest-

free, but the tax value, "interest advantage", must be reported as salary. Permanent employees of Equinor ASA may also apply for a

consumer loan up to NOK 350,000. The interest rate on consumer loans corresponds to the standard

rate in effect at any time for

“reasonable loans” from employer as decided by the Norwegian Ministry of Finance, i.e., the lowest

rate an employer may offer

without triggering taxation of the benefit for the employee.

The information set forth under the heading “

Equal treatment of shareholders and transactions with close associates

” in chapter 4

on pages 6-7 of the 2023 Corporate Governance Report is also incorporated herein by

reference. See also note 27 Related parties to

the Consolidated financial statements.

Interests of Experts and Counsel

Not applicable.

Equinor 2023 Annual Report on Form 20-F

ITEM 8. FINANCIAL INFORMATION

Consolidated Statements and Other Financial Information

See “Item 18. Financial Statements” of this 2023 Form 20-

Dividend policy and dividends

The information set forth under the heading ‘Capital distribution’ in Section 2.1 of Chapter

2 on page 41 of the 2023 Annual

Report is incorporated herein by reference. The information set forth under the heading ‘Equity

and dividends’ in Chapter 3 on pages

5 – 6 of the 2023 Corporate Governance Report is also incorporated herein by

reference.

See also note 20 Shareholders’ equity and dividends to the Consolidated financial statements.

Legal or arbitration proceedings

Equinor is involved in a number of proceedings globally concerning matters arising in connection

with the conduct of its business.

Equinor does not believe such proceedings will, individually or in the aggregate, have a significant

effect on Equinor’s financial

position, profitability, results of operations or liquidity.

See also note 11 Income taxes and note 26 Other commitments, contingent

liabilities and contingent assets to the Consolidated Financial Statements for a description of certain proceedings,

including updated

descriptions of litigation previously reported.

Significant Changes

None.

ITEM 9. THE OFFER AND LISTING

Offer and Listing Details

Equinor's shares have been listed on the Oslo

Børs (ticker: EQNR) and the New York Stock Exchange in the form of American

Depositary Shares (ADS) (ticker: EQNR) since our

initial public offering on 18 June 2001. The ADSs

traded on the New York Stock Exchange

are evidenced by American Depositary Receipts

(ADR), and each ADS represents one ordinary

share.

Plan of Distribution

Not applicable.

Markets

See “Item 9.A

―The Offer and Listing―Offer and Listing Details” of

this 2023

Form 20-

Selling Shareholders

Not applicable.

Dilution

Not applicable.

Expenses of the Issue

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

Share Capital

Not applicable.

Equinor 2023 Annual Report on Form 20-F

Memorandum and Articles of Association

Equinor's current articles of association were adopted at the annual general meeting of shareholders on 10 May 2023. The

articles of association are included as exhibit 1 to this 2023 Form 20-

Summary of Equinor’s articles of association:

Name of the company

The registered name is Equinor ASA. Equinor is a Norwegian public limited company.

Registered office

Equinor’s registered office is in Stavanger, Norway, registered with the Norwegian Register of Business Enterprises under

number 923 609 016.

Objective of the company

The objective of Equinor ASA is to develop, produce and market various forms of energy and derived

products and services, as

well as other business. The activities may also be carried out through participation in or cooperation

with other companies.

Share capital

Equinor’s share capital is NOK 7,507,761,512.50 divided into 3,003,104,605 shares.

Nominal value of shares

The nominal value of each ordinary share is NOK 2.50.

Board of directors

Equinor’s articles of association provide that the board of directors shall consist of 9 - 11 directors. The board, including the chair

and the deputy chair, shall be elected by the corporate assembly for a period of up to two years.

Corporate assembly

Equinor has a corporate assembly comprising 18 members who are normally elected for a term

of two years. The general

meeting elects 12 members with four deputy members, and six members with deputy members

are elected by and among the

employees.

General meetings of shareholders

Equinor’s annual general meeting is held no later than 30 June each year. The annual general meeting shall address and

decide

adoption of the annual report and accounts, including the distribution of any dividend and

any other matters required by law or the

articles of association.

Documents related to the general meetings do not need to be sent to all shareholders

if they are accessible on Equinor’s website.

A shareholder may request that such documents be sent to him/her.

Shareholders may vote in writing, including through electronic communication, during a

specified period before the general

meeting. Equinor's board of directors adopted guidelines for advance voting in March 2012,

and these guidelines are described in the

notices of the annual general meetings.

Marketing of petroleum on behalf of the Norwegian State

Equinor’s articles of association provide that Equinor is responsible for marketing and

selling petroleum produced under the

State’s direct financial interest’s (SDFI) shares in production licences on the Norwegian continental shelf as well as petroleum

received by the Norwegian State paid as royalty together with its own production. Equinor’s

general meeting adopted an instruction in

respect of such marketing on 25 May 2001, as most recently amended by authorisation of the

annual general meeting on 15 May

2018.

Nomination committee

The tasks of the nomination committee are to present a recommendation to:

●

The general meeting regarding the election of shareholder-elected members and

deputy members of the corporate assembly.

●

The general meeting regarding the election of members of the nomination committee.

●

The general meeting for the remuneration of members of the corporate assembly and the nomination

committee.

●

The corporate assembly regarding the election of shareholder-elected members to the board of

directors.

●

The corporate assembly for the remuneration for members of the board of directors.

●

The corporate assembly for election of the chair and the deputy chair of the corporate assembly.

The general meeting may adopt instructions for the nomination committee.

Equinor 2023 Annual Report on Form 20-F

Exhibit 2.1 to this 2023 Form 20-F is also incorporated herein by reference.

Material Contracts

Equinor is the technical service provider (TSP) for

the Kårstø and Kollsnes gas processing plants

in accordance with the technical service

agreement between Equinor and Gassco AS. Equinor holds

an ownership interest in Vestprosess (34%), which transports

and processes NGL

and condensate. Vestprosess is also operated by Gassco, with Equinor

as TSP. The technical services agreement between Gassco AS and

Equinor is included as Exhibit 4(a)(i), along with

the amendments thereto in Exhibit 4(a)(ii), to

this 2023 Form 20-

See also note 27 Related parties to the Consolidated

financial statements.

Exchange controls

Under Norwegian foreign exchange controls currently in effect, transfers of capital to and from Norway are

not subject to prior

government approval. An exception applies to the physical transfer of payments in

currency exceeding certain thresholds, which

must

be declared to the Norwegian custom authorities. This means that non-Norwegian resident shareholders

may receive dividend

payments without Norwegian exchange control consent as long as the payment is made

through a licensed bank or other licensed

payment institution.

There are no restrictions affecting the rights of non-Norwegian residents or foreign owners who hold our shares

to receive

dividends, interest or other similar payments.

Taxation

Norwegian tax consequences

This section describes material Norwegian tax consequences for shareholders in connection with

the acquisition, ownership

and disposal of shares and American Depositary Shares (“ADS”) in Equinor. The term “shareholders” refers to both holders of

shares and holders of ADSs, unless otherwise explicitly stated.

The outline does not provide a complete description of all Norwegian tax regulations that might be relevant

for the individual

shareholder. The outline is based on current law and practice, but these laws and practice are subject to change, possibly also on

a retroactive basis. Thus, the actual tax consequences for a shareholder may differ from the description

set out below.

Shareholders should consult their professional tax advisers for advice about the specific tax consequences

of owning and

disposing of shares or ADSs in Equinor in their particular situation, in case special regulations

may apply.

Taxation of dividends received by Norwegian shareholders

Corporate shareholders (i.e., limited liability companies and similar entities) residing in Norway

for tax purposes are generally

subject to tax in Norway on dividends received from Equinor in the year the dividend is declared.

For the tax year 2023, only 3% of

the dividends received is subject to tax at the ordinary income tax rate of 22% (the

tax rate is 25% for entities subject to the

finance tax). The effective tax rate for dividends received by corporate shareholders is thus 0.66% (3% x 22%)

for ordinary

corporations and 0.75% (3% x 25%) for entities subject to the finance tax. As of today, the same tax rates will apply for the tax

year 2024.

Individual shareholders residing in Norway for tax purposes are subject to tax in Norway for dividends

received from Equinor

exceeding a tax-free allowance (the tax-free allowance is described below). Dividends exceeding the tax-free

allowance are

generally included in the individual’s ordinary taxable income in the year the dividend is declared. For the tax year

2023, dividend

income exceeding the tax-free allowance is grossed up with a factor of 1.72 before being included

in the ordinary taxable income,

resulting in an effective tax rate of 37.84% (22% x 1.72). As of today, the same tax rates will apply for the tax year 2024.

The tax-free allowance is computed for each individual share or ADS. The annual tax-free allowance equals

the allowance

basis multiplied by a risk-free interest rate set annually by the tax authorities. The allowance

basis is equal to the acquisition cost

for such share or ADS, as adjusted with inter alia any repayment of capital and any unused allowance.

If the calculated allowance

for one year exceeds the dividend distributed on the share or ADS, the excess (the

“unused allowance”) may be carried forward

and set off against future dividends received on the same share or ADS (or gains upon the realisation of the

same share or ADS,

see below). Any unused allowance will also be added to the allowance basis for such share or ADS

and thus increase the tax-free

allowance in the following year until the unused allowance has been utilised.

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in

Equinor through a stock

savings account. Dividend on shares owned through the stock savings account is only taxable when

the dividend is withdrawn

from the account.

Taxation of dividends received by foreign shareholders

Equinor 2023 Annual Report on Form 20-F

Non-resident shareholders are as a starting point subject to Norwegian withholding tax

in the tax year 2023 at a rate of 25%

on dividends from Norwegian companies. The distributing company is responsible for

deducting the withholding tax upon

distribution to non-resident shareholders. As of today, the same withholding tax rate will apply for the tax year 2024.

Corporate shareholders that carry on business activities in Norway, and whose shares or ADSs are effectively connected with

such activities are not subject to withholding tax. For such shareholders, 3% of the received dividends

are in the tax year 2023

subject to the standard income tax of 22% (25% for companies subject to the finance tax).

As of today, the same tax rate will

apply for the tax year 2024.

Certain other important exceptions and modifications are outlined below.

The withholding tax does not apply to corporate shareholders in the EEA that are comparable

to Norwegian limited liability

companies or certain other types of Norwegian entities, and are further able to demonstrate that

they are genuinely established

and carry on genuine economic business activity within the EEA.

The withholding rate of 25% is often reduced in tax treaties between Norway and other countries.

The reduced withholding

tax rate will generally only apply to dividends paid on shares held by shareholders who

are able to properly demonstrate that they

are the beneficial owner and entitled to the benefits of the tax treaty.

Individual shareholders residing for tax purposes in the EEA may apply to the Norwegian tax authorities

for a refund if the tax

withheld by the distributing company exceeds the tax that would have been levied

on individual shareholders resident in Norway.

Individual shareholders residing for tax purposes in the EEA may hold the listed shares (but not ADS)

in Equinor through a

Norwegian stock savings account. Dividend on shares owned through the stock savings

account will only be subject to withholding

tax when withdrawn from the account.

Procedure for claiming a reduced withholding tax rate on dividends

A foreign shareholder that is entitled to an exemption from or reduction of withholding tax on dividends,

may request that the

exemption or reduction is applied at source by the distributor. Such request must be accompanied by satisfactory documentation

which supports that the foreign shareholder is entitled to a reduced withholding tax

rate. Specific documentation requirements

apply.

For holders of shares and ADSs deposited with JPMorgan Chase Bank N.A. (JPMorgan),

documentation establishing that the

holder is eligible for the benefits under a tax treaty with Norway, may be provided to JPMorgan. JPMorgan has been granted

permission by the Norwegian tax authorities to receive dividends from us for redistribution

to a beneficial owner of shares and

ADSs at the applicable treaty withholding rate.

The statutory 25% withholding tax rate will be levied on dividends paid to shareholders (either directly

or through a

depositary) who have not provided the relevant documentation to the relevant party that they

are eligible for a reduced rate.

Shareholders that believe they are eligible for a reduced rate will in this case have to apply to Skatteetaten

(The Norwegian Tax

Administration) for a refund of the excess amount of tax withheld. Please refer to the tax

authorities’ web page for more

information and the requirements of such application: skatteetaten.no (Reduced withholding tax

on share dividends for foreign

shareholders – The Norwegian Tax Administration).

Taxation on realisation of shares and ADSs

Corporate shareholders resident in Norway for tax purposes are not subject to tax in Norway

on gains derived from the sale,

redemption or other disposal of shares or ADSs in Equinor.

On the other hand, corporate shareholders resident in Norway are not

allowed any deduction for losses on shares or ADS in Equinor.

Individual shareholders residing in Norway for tax purposes are subject to tax in Norway on

the sale, redemption or other

disposal of shares or ADSs. Taxable gains or losses in connection with such realisation are included in the individual's ordinary

taxable income in the year of disposal. In the tax year 2023, the taxable gain or loss

on the realised shares or ADSs is grossed up

with a factor of 1.72 before it is included in the ordinary taxable income, resulting in an

effective tax rate of 37.84% (22% x 1.72).

As of today, the same tax rate will apply to gains and losses realised in the tax year 2024.

The taxable gain or deductible loss (before grossing up) is calculated as the sales price adjusted for transaction

expenses

minus the taxable basis. A shareholder's tax basis is normally equal to the acquisition cost of the

shares or ADSs (as adjusted with

inter alia any repayment of capital). Any unused allowance pertaining to a share or ADS may

be deducted from a taxable gain on

the same share or ADS but may not lead to or increase a deductible loss. Furthermore,

any unused allowance may not be set off

against gains from the realisation of other shares or ADSs held by the shareholder.

If a shareholder disposes of shares or ADSs acquired at different times, the shares or ADSs that were first

acquired will be

deemed to be first sold (the “FIFO” principle) when calculating the gain or loss for tax purposes.

Equinor 2023 Annual Report on Form 20-F

Individual shareholders residing in Norway for tax purposes may hold the shares (but not ADS) in

Equinor through a stock

savings account. Gain on shares owned through the stock savings account will only be taxable

when withdrawn from the account

whereas loss on shares will be deductible when the account is terminated.

A corporate shareholder or an individual shareholder who ceases to be tax resident in Norway

due to Norwegian law or tax

treaty provisions may, in certain circumstances, become subject to Norwegian exit taxation on unrealised capital gains related to

shares or ADSs.

Shareholders not residing in Norway are generally not subject to tax in Norway on capital gains,

and losses are not deductible

on the sale, redemption or other disposal of shares or ADSs in Equinor, unless the shareholder carries on business activities in

Norway and such shares or ADSs are or have been effectively connected with such activities.

Wealth tax

The shares or ADSs are included in the basis for the computation of wealth tax imposed

on individuals residing in Norway for

tax purposes. Norwegian limited liability companies and certain similar entities are not subject to

wealth tax.

For the tax year 2023, the net wealth tax is 1.0% for net worth above a minimum

threshold of NOK 1,700,000, and 1.1% for

net worth above a minimum threshold of NOK 20,000,000. The assessment value of listed shares

(including ADSs) is 80% of the

listed value of such shares or ADSs on 1 January 2024. As of today, the same rates and thresholds will apply for the tax year

2024.

Non-resident shareholders are not subject to wealth tax in Norway for shares and ADSs

in Norwegian limited liability

companies unless the shareholder is an individual and the shareholding is effectively connected with the individual's

business

activities in Norway.

Inheritance tax and gift tax

No inheritance or gift tax is imposed in Norway.

Transfer tax

No transfer tax is imposed in Norway in connection with the sale or purchase of shares or

ADSs.

United States tax matters

This section describes the material United States federal income tax consequences for US holders (as

defined below) of the

ownership and disposition of shares or ADSs. It only applies to you if you hold your shares or ADSs

as capital assets for United

States federal income tax purposes. This discussion addresses only United States federal income taxation

and does not discuss

all of the tax consequences that may be relevant to you in light of your individual circumstances,

including foreign, state or local

tax consequences, estate and gift tax consequences, and tax consequences arising

under the Medicare contribution tax on net

investment income or the alternative minimum tax. This section does not apply to you if

you are a member of a special class of

holders subject to special rules, including dealers in securities, traders in securities that elect to

use a mark-to-market method of

accounting for securities holdings, tax-exempt organisations, insurance companies, partnerships or entities

or arrangements that

are treated as partnerships for United States federal income tax purposes, persons that actually

or constructively own 10% of the

combined voting power of voting stock of Equinor or of the total value of stock of Equinor, persons that hold shares or ADSs as

part of a straddle or a hedging or conversion transaction, persons that purchase or sell shares or ADSs

as part of a wash sale for

tax purposes, or persons whose functional currency is not USD.

This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed

regulations, published rulings and court decisions, all as currently in effect, and the Convention between the United

States of

America and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to

Taxes on Income and Property (the “Treaty”). These laws are subject to change, possibly on a retroactive basis. In addition, this

section is based in part upon the representations of the depositary and the assumption that

each obligation in the deposit

agreement and any related agreement will be performed in accordance with its terms. For

United States federal income tax

purposes, if you hold ADRs evidencing ADSs, you will generally be treated as the owner of the

shares represented by those

ADRs. Exchanges of shares for ADRs and ADRs for shares will not generally be subject to United

States federal income tax.

A “US holder” is a beneficial owner of shares or ADSs that is, for United States federal

income tax purposes: (i) a citizen or

resident of the United States; (ii) a United States domestic corporation; (iii) an estate whose

income is subject to United States

federal income tax regardless of its source; or (iv) a trust if a United States court can

exercise primary supervision over the trust's

administration and one or more United States persons are authorised to control all substantial decisions

of the trust.

You should consult your own tax adviser regarding the United States federal, state and local and Norwegian and other tax

consequences of owning and disposing of shares and ADSs in your particular circumstances.

Equinor 2023 Annual Report on Form 20-F

The tax treatment of the shares or ADSs will depend in part on whether or not we are classified

as a passive foreign

investment company, or PFIC, for United States federal income tax purposes. Except as discussed below, under “—PFIC rules”,

this discussion assumes that we are not classified as a PFIC for United States federal income tax

purposes.

Taxation of distributions

Under the United States federal income tax laws, the gross amount of any distribution (including

any Norwegian tax withheld

from the distribution payment) paid by Equinor out of its current or accumulated earnings and profits

(as determined for United

States federal income tax purposes), other than certain pro-rata distributions of its shares, will be treated

as a dividend that is

taxable for you when you, in the case of shares, or the depositary, in the case of ADSs, receive the dividend, actually or

constructively. If you are a non-corporate US holder, dividends that constitute qualified dividend income will be eligible to be taxed

at the preferential rates applicable to longterm capital gains as long as, in the year that

you receive the dividend, the shares or

ADSs are readily tradable on an established securities market in the United States or Equinor

is eligible for benefits under the

Treaty. We believe that Equinor is currently eligible for the benefits of the Treaty and we therefore expect that dividends on the

ordinary shares or ADSs will be qualified dividend income. To qualify for the preferential rates, you must hold the shares or ADSs

for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date

and meet certain other

requirements. The dividend will not be eligible for the dividends-received deduction generally

allowed to United States

corporations in respect of dividends received from other United States corporations.

The amount of the dividend distribution that you must include in your income will be the

value in USD of the payments made

in NOK determined at the spot NOK/USD rate on the date the dividend is distributed, regardless of whether or

not the payment is

in fact converted into USD. Distributions in excess of current and accumulated earnings and profits,

as determined for United

States federal income tax purposes, will be treated as a non-taxable return of capital to the extent

of your tax basis in the shares

or ADSs and, to the extent in excess of your tax basis, will be treated as capital gain. However, Equinor does not expect to

calculate earnings and profits in accordance with United States federal income tax principles. Accordingly, you should expect to

generally treat distributions we make as dividends.

Subject to certain limitations, the 15% Norwegian tax withheld in accordance with the Treaty and paid to Norway will

creditable or deductible against your United States federal income tax liability, unless a reduction or refund of the tax withheld is

available to you under Norwegian law. Special rules apply in determining the foreign tax credit limitation with respect to dividends

that are subject to the preferential tax rates.

Dividends will generally be income from sources outside the United States and will generally

be “passive” income for

purposes of computing the foreign tax credit allowable to you. Any gain or loss resulting from

currency exchange rate fluctuations

during the period from the date you include the dividend payment in income until the date

you convert the payment into USD will

generally be treated as US-source ordinary income or loss and will not be eligible for

the special tax rate applicable to qualified

dividend income.

Taxation of capital gains

If you sell or otherwise dispose of your shares or ADSs, you will generally recognise a capital gain

or loss for United States

federal income tax purposes equal to the difference between the value in USD of the

amount that you realise and your tax basis,

determined in USD, in your shares or ADSs. Capital gain of a non-corporate US

holder is generally taxed at preferential rates if

the property is held for more than one year. The gain or loss will generally be income or loss from sources within the United States

for foreign tax credit limitation purposes. If you receive any foreign currency on the sale

of shares or ADSs, you may recognise

ordinary income or loss from sources within the United States as a result of currency fluctuations

between the date of the sale of

the shares or ADSs and the date the sales proceeds are converted into USD. You should consult your own tax adviser regarding

how to account for payments made or received in a currency other than USD.

PFIC rules

We believe that the shares and ADSs should not currently be treated as stock of a PFIC for United

States federal income tax

purposes and we do not expect to become a PFIC in the foreseeable future. However, this conclusion is a factual determination

that is made annually and thus may be subject to change. It is therefore possible that we could

become a PFIC in a future taxable

year.

In general, we will be a PFIC in a taxable year if:

●

at least 75% of our gross income for the taxable year is passive income or

●

at least 50% of the value, determined on the basis of a quarterly average, of our assets

in such taxable year is attributable to

assets that produce or are held for the production of passive income.

“Passive income” generally includes dividends, interest, gains from the sale or exchange of investment

property rents and

royalties (other than certain rents and royalties derived in the active conduct of a trade

or business) and certain other specified

categories of income. If a foreign corporation owns at least 25% by value of the

stock of another corporation, the foreign

corporation is treated for purposes of the PFIC tests as owning its proportionate share

of the assets of the other corporation, and

Equinor 2023 Annual Report on Form 20-F

as receiving directly its proportionate share of the other corporation's income.

If we were to be treated as a PFIC, you will generally be subject to special rules with

respect to:

●

any gain you realise on the sale or other disposition of your shares or ADSs and

●

any excess distribution that we make to you (generally, any distributions to you during a single taxable year, other than the

taxable year in which your holding period in the shares or ADSs begins, that are greater

than 125% of the average annual

distributions received by you in respect of the shares or ADSs during the three preceding taxable

years or, if shorter, your

holding period for the shares or ADSs that preceded the taxable year in which you receive

the distribution).

Under these rules:

●

the gain or excess distribution will be allocated ratably over your holding period for the shares or

ADSs,

●

the amount allocated to the taxable year in which you realized the gain or excess

distribution or to prior years before the first

year in which we were a PFIC with respect to you will be taxed as ordinary income,

●

the amount allocated to each other prior year will be taxed at the highest tax

rate in effect for that year, and

●

the interest charge generally applicable to underpayments of tax will be imposed in respect

of the tax attributable to each

such year.

Special rules apply for calculating the amount of the foreign tax credit with respect to

excess distributions by a PFIC.

Unless you make certain elections, your shares or ADSs will generally be treated

as stock in a PFIC if we were a PFIC at any

time during your holding period in your shares or ADSs, even if we are not currently a PFIC.

In addition, notwithstanding any election you make with regard to the shares or ADSs, dividends

that you receive from us will

not constitute qualified dividend income to you if we are a PFIC (or are treated as a PFIC with

respect to you) either in the taxable

year of the distribution or the preceding taxable year. Dividends that you receive that do not constitute qualified dividend income

are not eligible for taxation at the preferential rates applicable to qualified dividend income.

Instead, you must include the gross

amount of any such dividend paid by us out of our accumulated earnings and profits (as determined for

United States federal

income tax purposes) in your gross income, and it will be subject to tax at rates applicable

to ordinary income.

If you own shares or ADSs during any year that we are a PFIC with respect to you, you may

be required to file Internal Revenue

Service (“IRS”) Form 8621.

Foreign Account Tax Compliance Withholding

A 30% withholding tax will be imposed on certain payments to certain non-US financial institutions

that fail to comply with

information reporting requirements or certification requirements in respect of their direct and indirect United

States shareholders

and/or United States accountholders. To avoid becoming subject to the 30% withholding tax on payments to them, we and other

non-US financial institutions may be required to report information to the IRS regarding

the holders of shares or ADSs and to

withhold on a portion of payments under the shares or ADSs to certain holders that fail to comply

with the relevant information

reporting requirements (or hold shares or ADSs directly or indirectly through certain non-compliant

intermediaries). However,

under proposed Treasury regulations, such withholding will not apply to payments made before the date that is two years after the

date on which final regulations defining the term “foreign passthru payment” are enacted. The

rules for the implementation of

these requirements have not yet been fully finalised, so it is impossible to determine at this time

what impact, if any, these

requirements will have on holders of the shares and ADSs.

Dividends and Paying Agents

Not applicable.

Statement by Experts

Not applicable.

Documents on Display

Our filings with the SEC are available to the public through the SEC’s website at http://www.sec.gov. We also make available on

our website, free of charge, our annual reports on Form 20-F, as well as certain other SEC filings, as soon as reasonably practicable

after they are electronically filed with or furnished to the SEC. The information on our website

is not incorporated by reference in this

document.

Documents related to us that are available to the public (this 2023 Form 20-F, the 2023 Annual Report, our Articles of

Association, our Code of Conduct, financial statements and our historical financial information for

each of the three financial years

preceding the publication of this 2023 Form 20-F) can be consulted on our website and at: Equinor ASA,

Forusbeen 50, 4035

Stavanger, Norway.

Unless stated otherwise, none of these documents form a part of this 2023

Form 20-

Equinor 2023 Annual Report on Form 20-F

Subsidiary Information

Not applicable.

Annual Report to Security Holders.

Not applicable.

ITEM 11. QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

See notes 4 Financial risk and capital management and 28 Financial instruments and fair value

measurement to the

Consolidated financial statements.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Debt Securities

Not applicable.

Warrants and Rights

Not applicable.

Other Securities

Not applicable.

American Depositary Shares

Exhibit 2.1 to this 2023 Form 20-F is incorporated herein by reference.

Name of depositary and address of its principal executive office.

JPMorgan Chase Bank N.A. (JPMorgan), serves as the depositary for Equinor’s

ADR programme having replaced the Deutsche

Bank Trust Company Americas (Deutsche Bank) pursuant to the Further Amended and Restated Deposit Agreement dated

February 2019.

Fees and charges payable by a holder of ADSs

JPMorgan collects its fees for the delivery and surrender of ADSs directly from investors depositing shares

or surrendering ADSs

for the purpose of withdrawal, or from intermediaries acting for them. The depositary collects other fees from

investors by billing ADR

holders, by deducting such fees and charges from the amounts distributed or by deducting such fees from

cash dividends or other

cash distributions. The depositary may refuse to provide fee-attracting services until its fees

for those services are paid.

The charges of the depositary payable by investors are as follows:

ADR holders, persons depositing or withdrawing shares,

and/or persons whom ADSs are

issued, must pay:

For:

USD 5.00 (or less) per 100 ADSs (or portion of 100 ADSs)

Issuance of ADSs, including issuances resulting from a

deposit of shares, a distribution of shares or rights or other

property, and issuances pursuant

to stock dividends, stock

splits, mergers, exchanges of securities or any other

transactions or events affecting the ADSs or the

deposited

securities.

Cancellation of ADSs for the purpose of withdrawal

deposited securities, including if the deposit agreement

terminates, or a cancellation or reduction of ADSs for any

other reason

USD 0.05 (or less) per ADS

Any cash distribution made or elective cash/stock dividend

offered pursuant to the Deposit Agreement

USD 0.05 (or less) per ADS, per calendar year (or portion

thereof)

For the operation and maintenance costs in administering

the ADR programme

A fee equivalent to the fee that would be payable if securities

distributed to you had been shares

and the shares had been deposited for issuance of ADSs

Distribution to registered ADR holders of (i) securities

distributed by the company to holders of deposited

securities or (ii) cash proceeds from the sale of such

securities

Equinor 2023 Annual Report on Form 20-F

Registration or transfer fees

Transfer and registration of shares on our share

or from the name of the Depositary or its agent when you

deposit or withdraw shares

Expenses of the Depositary

SWIFT, cable, telex,

facsimile transmission and delivery

charges (as provided in the deposit agreement).

Fees, expenses and other charges of JPMorgan or its

agent (which may be a division, branch or affiliate) for

converting foreign currency to USD, which shall be

deducted out of such foreign currency.

Taxes and other

governmental charges the Depositary or the custodian

have to pay, for example,

stock transfer taxes, stamp duty or withholding taxes

As necessary

Any fees, charges and expenses incurred by the Depositary

or its agents for the servicing of the

deposited securities, the sale of securities, the delivery of

deposited securities or in connection with

the depositary's or its custodian's compliance with applicable

law, rule or regulation, including

without limitation expenses incurred on behalf of ADR holders

in connection with compliance with

foreign exchange control regulations or any law or regulation

relating to foreign investment

As necessary

Direct and indirect payments by the depositary

For the year ended 31 December 2023, J.P. Morgan reimbursed USD 2,000,000 to the company. Other reasonable costs

associated with the administration of the ADR programme are borne by the company. For the year ended 31 December 2023, such

costs, associated with the administration of the ADR programme, paid by the company, added up to USD 272,095. Under certain

circumstances, including the removal of J.P. Morgan as depositary,

the company is required to repay to J.P. Morgan certain amounts

paid to the company in prior periods.

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO

THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Equinor, with the participation of our chief executive officer and chief financial officer, has evaluated the

effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act

Rule 13a-15(b) as of

31 December 2023. Based on that evaluation, the chief executive officer and chief financial officer have concluded that

these

disclosure controls and procedures are effective at a reasonable level of assurance.

In designing and evaluating our disclosure controls and procedures, our management, with the

participation of the chief executive

officer and chief financial officer, recognised that any controls and procedures, no matter how well designed and operated, can only

provide reasonable assurance that the desired control objectives will be achieved, and

that the management must necessarily

exercise judgment when evaluating possible controls and procedures. Because of the limitations inherent

in all control systems, no

evaluation of controls can provide absolute assurance that all control issues and any instances of fraud

in the company have been

detected.

Management’s Annual Report on Internal Control Over Financial Reporting

The management of Equinor is responsible for establishing and maintaining adequate internal control

over financial reporting.

Our internal control over financial reporting is a process designed, under the supervision of the chief executive

officer and chief

financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Equinor’s

financial statements for external reporting purposes in accordance with IFRS Accounting Standards

as adopted by the European

Union (EU). The accounting policies applied by the group also comply with IFRS Accounting

Standards as issued by the International

Accounting Standards Board (IASB).

The management of Equinor has assessed the effectiveness of internal control over financial reporting based

on the Internal

Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of

the Treadway Commission (COSO).

Based on this assessment, management has concluded that Equinor’s internal

control over financial reporting as of 31 December

2023 was effective.

Equinor 2023 Annual Report on Form 20-F

Equinor’s internal control over financial reporting includes policies and procedures

that pertain to the maintenance of records that,

in reasonable detail, accurately and fairly reflect transactions and dispositions of assets, provide reasonable

assurance that

transactions are recorded in the manner necessary to permit the preparation of financial statements in

accordance with IFRS

Accounting Standards, and that receipts and expenditures are only carried out in accordance

with the authorisation of the

management and directors of Equinor; and provide reasonable assurance regarding the

prevention or timely detection of any

unauthorised acquisition, use or disposition of Equinor’s assets that could have

a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or

detect all misstatements. Moreover,

projections of any evaluation of the effectiveness of internal control to future periods are subject to a risk that

controls may become

inadequate because of changes in conditions and that the degree of compliance with policies

or procedures may deteriorate.

Attestation Report of the Registered Public Accounting Firm

The effectiveness of internal control over financial reporting as of 31 December 2023 has been audited by Ernst & Young AS, an

independent registered accounting firm that also audits Equinor’s Consolidated

financial statements. Their audit report on the internal

control over financial reporting is included in the Consolidated financial statements.

Changes in Internal Control Over Financial Reporting

There were no significant changes in our internal control over financial reporting during the

year ended 31 December 2023 that

have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

Our board of directors has determined that both Anne Drinkwater and Rebekka Glasser Herlofsen qualify

as an “audit committee

financial expert” as defined in Item 16A of Form 20-F under the Exchange Act and each of them

is an independent director under Rule

10A-3 under the Exchange Act.

ITEM 16B. CODE OF ETHICS

We have adopted a Code of Conduct, which is approved by our board of directors, and applies to

our board members, all of our

employees (including our principal executive, principal financial and principal accounting officers) and hired personnel. Our Code

Conduct is filed as Exhibit 11 to this 2023 Form 20-

In 2023, our board of directors approved certain amendments to our Code of Conduct, including:

Updates to sections related to harassment, bullying and discrimination; and

Updates referencing internal control over financial reporting requirements as an important part of financial

reporting.

In 2023, we did not grant any waiver, including any implicit waiver, from any provision of the Code of Conduct to our principal

executive officer, principal financial officer, principal accounting officer or controller,

or persons performing similar functions.

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information set forth under the heading “

External auditor

” in chapter 15 on pages 18 – 19 of the 2023 Corporate Governance

Report is incorporated herein by reference. See also note 9 Auditor’s remuneration

and Research and development expenditures to

the Consolidated financial statements.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

See “Item 16G. Corporate Governance―Board committees” of this 2023 Form 20-

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND

AFFILIATED PURCHASERS

The information set forth under the headings “

Equinor’s share incentive plans

”, “

Share buybacks

” and “

Summary of share

buybacks

”

in Section 5.1 of Chapter 5 on pages 261 – 263 of the 2023 Annual Report is also incorporated

herein by reference.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Equinor 2023 Annual Report on Form 20-F

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

Equinor’s primary listing is on Oslo Børs. The American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange

(NYSE). In addition, Equinor is a foreign private issuer subject to the reporting requirements of

the SEC. ADRs representing the

company’s ordinary shares are listed on the NYSE. While Equinor’s corporate governance practices

follow the requirements of

Norwegian law, Equinor is also subject to the NYSE’s listing rules. As a foreign private issuer, Equinor is exempt from most of the

NYSE corporate governance standards that domestic US companies must comply with. However, Equinor is required to disclose any

significant ways in which its corporate governance practices differ from those applicable to domestic US

companies under the NYSE

rules. A statement of differences is set out below:

Corporate governance guidelines

The NYSE rules require domestic US companies to adopt and disclose corporate governance guidelines.

Equinor’s corporate

governance principles are developed by the management and the board of directors, in accordance with the

Norwegian Code of

Practice for Corporate Governance and applicable law. Oversight of the board of directors and management is exercised by the

corporate assembly.

Director independence

The NYSE rules require domestic US companies to have a majority of “independent directors”.

The NYSE definition of an

“independent director” sets out five specific tests of independence and requires an affirmative determination by the

board of directors

that the director has no material relationship with the company.

Pursuant to Norwegian company law, Equinor’s board of directors consists of members elected by the corporate assembly

both

for shareholder and employee representatives. Equinor’s board of directors has determined

that, in its judgment, all shareholder

representatives are independent. In making its determinations of independence, the board focuses, among

other things, on there not

being any conflicts of interest between shareholders, the board of directors and the company’s management. It does not

strictly make

its determination based on the NYSE’s five specific tests but takes into consideration all relevant circumstances which

may in the

board’s view affect the directors’ independence. The directors elected from among Equinor’s employees would

not be considered

independent under the NYSE rules as they are employees of Equinor. None of these employee representatives are executive officers

of the company. For further information about the board of directors, see “Item 6. Directors, Senior Management and Employees—A.

Directors and Senior Management” of this 2023 Form 20-

Board committees

Pursuant to Norwegian company law, managing the company is the responsibility of the board of directors. Equinor has an audit

committee, a safety, sustainability and ethics committee and a compensation and executive development committee. The audit

committee and the compensation and executive development committee operate pursuant to instructions

that are broadly comparable

to the applicable committee charters required by the NYSE rules. They report on a regular basis to,

and are subject to, oversight by

the board of directors.

Equinor complies with the NYSE rule regarding the obligation to have an audit committee that meets

the requirements of Rule

10A-3 of the US Securities Exchange Act of 1934. The members of Equinor’s

audit committee include an employee representative

director. Equinor relies on the exemption provided in Rule 10A-3(b)(1)(iv)(C) from the independence requirements of the US Securities

Exchange Act of 1934 with respect to the employee representative director. Equinor does not believe that its reliance on this

exemption will materially adversely affect the ability of the audit committee to act independently

or to satisfy the other requirements of

Rule 10A-3 relating to audit committees. The other members of the audit committee meet

the independence requirements under Rule

10A-3.

Among other things, the audit committee evaluates the qualifications and independence of the company’s external

auditor.

However, in accordance with Norwegian law, the auditor is elected by the annual general meeting of the company’s shareholders.

Equinor does not have a nominating/corporate governance committee formed from its board of directors. Instead,

the roles prescribed

under the NYSE rules for such committee are principally carried out by the corporate assembly and

the nomination committee. The

nomination committee is elected by the general meeting of shareholders, while the corporate assembly is

elected partly by the general

meeting of shareholders and partly by and among the employees.

NYSE rules require the compensation committee of US companies to comprise independent

directors, recommend senior

management remuneration and determine the independence of advisors when engaging them. Equinor, as a foreign private issuer, is

exempted from complying with these rules and is permitted to follow its home country regulations.

The compensation committee

consists of four shareholder representatives and one employee representative. Equinor’s compensation

committee makes

recommendations to the board regarding management remuneration, including that of the CEO.

Further, the compensation committee

assesses its own performance and has the authority to hire external advisors. The

nomination committee, which is elected by the

general meeting of shareholders, recommends to the corporate assembly the candidates and

remuneration of the board of directors.

Equinor 2023 Annual Report on Form 20-F

The nomination committee also recommends to the general meeting of shareholders the candidates and

remuneration for the

nomination committee and the shareholder representative candidates and remuneration for the

corporate assembly.

Shareholder approval of equity compensation plans

NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to

a shareholder vote.

Under Norwegian company law, although the issuance of shares and authority to buy-back company shares must be approved by

Equinor’s annual general meeting of shareholders, the approval of equity compensation

plans is normally reserved for the board of

directors.

ITEM 16H. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

ITEM 16J. INSIDER TRADING POLICIES

Not applicable.

ITEM 16K. CYBERSECURITY DISCLOSURE

Cyber security Risk Management and Strategy

Our processes for assessing, identifying and managing material risks from cyber security threats are integrated into our enterprise risk

management (ERM)

framework, which

we use

to identify,

analyze, evaluate

and manage

risks. We

recognize that

risks from

cyber

security threats are interconnected

and company-wide, so we seek to ensure

shared situational awareness and common prioritization

across

different

business

areas.

described

further

below

under

“Cyber

security

Governance”,

have

cross-departmental

approach to addressing cyber security risk, which includes our employees, management and board

of directors.

We use a variety

of tools and processes to

identify, assess and

manage material cyber security risks.

We identify cyber security

risks

based

on an

evaluation of

various

cyber

security

threat scenarios

that

may cause

disruption to

our

business or

operations. These

scenarios

are

developed

represent

incremental

levels

severity

the

estimated

monetary,

reputational,

safety,

security

sustainability impact

of cyber

security threats

such as

social engineering

(phishing), malicious

software targeting

end-users/network,

unauthorized access by insiders, employee/consultant error and/or unintended errors.

conduct

annual

company-wide

cyber

security

assessments

assess

the

threats

posed

external

actors

our

information

technology and operational technology systems and promote awareness internally of the cyber security threats faced by the company.

We also conduct assessments

of cyber security

incidents experienced by

the company and

third parties relevant

to the company. These

assessments

are

conducted

collaboration

between

the

technology,

digital

and

innovation

business

area,

the

global

operations

technology excellence

unit and

the corporate

security and

crisis management

unit. The

business area

risk owners,

regional security

managers,

country

office

representatives,

political

analysis

teams,

shipping

security

teams,

enterprise

data

and

cyber

security

professionals and the emergency response-and-support centre are all involved in

and contribute to these assessments. The results of

these assessments are shared regularly with the board of directors, including the safety, sustainability and ethics committee.

We engage

external assessors to

conduct maturity testing

to evaluate our

processes and procedures

within specific areas

to ensure

continuous development of barriers against

cyber security threats. We also seek

information from national security authorities

and work

closely with

IT vendors,

external cyber

security advisory

services and

other companies

in the

industry with

the aim

of continuously

improving our capabilities to identify, protect, detect, respond to and recover from

cyber security threats. We also use input provided by

external auditors as part of independent reviews to improve our cyber security barriers.

Actual and/or potential vulnerabilities

in our information systems

are continuously monitored by

our Cyber Defence Center.

We follow

the

ISO27001, IEC62443

and National

Institute for

Standard and

Technology

(NIST) cyber

security

frameworks to

build resilience,

focusing on

capabilities for

reducing both

the probability

and consequences

of cyber

security incidents.

We utilize

multiple tools

and

practices to monitor external developments related to

cyber security which may be relevant to the

company, such as alerts/publications

from

national

cyber

security

centres,

advice

from

security

risk

consulting

firms

and

reports

from

information

technology

and

cyber

security companies,

and assess

their implications

for Equinor

with a

focus on

external factors,

such as

the threat

actors’ presence,

capability, intent, past targeting

and anticipated

future targeting,

as well

as internal

factors such

as evidence

of attacks on

our information

systems. All relevant updates and developments are disseminated across the company through the company’s intranet and e-mails to

interested internal stakeholders.

provide

cyber

security

awareness training

all

our

employees

annual

basis

which is

designed

provide

guidance for

identifying and avoiding cyber

security risks, and require

employees in certain roles

to complete additional

role based, specialized cyber

security trainings.

Equinor 2023 Annual Report on Form 20-F

We have

company-wide management

systems detailing

protocols and

response governance

for emergency

response and

business

continuity management. Our management systems reflect

industry good practices, internal requirements,

national laws and regulations

and ISO/IEC standards

to identify,

protect, detect, respond and

recover from cyber

security threats. The

corporate security and crisis

management unit

is responsible

for setting

strategic direction

and maintaining

the company’s

corporate framework

on crisis

and business

continuity management. We

have adopted business continuity

plans and disaster recovery

plans which are

designed with the

goal of

minimizing the consequences of cyber security incidents, and are reviewed on a regular basis. We also have a

dedicated global cyber

security incident

response team,

comprised of

specially trained

personnel, that

provides assistance

and support

in dealing

with any

actual and/or potential cyber security incidents.

In addition to assessing our

own cyber security preparedness, we also

consider and evaluate cyber security

risks associated with our

use of third-party service providers. We have

integrated cyber security risk management into our procurement process whereby cyber

security risks are identified

and assessed in the

early stages of negotiating

contracts and addressed accordingly based

on the nature

of services provided. Cyber security risks associated with third parties are monitored through the life

cycle of the relationships.

In 2023, as in previous years, we experienced several cyber security incidents and other disruptions to our information systems. None

of these

incidents and

systems disruptions,

including those

reported to

us by

our third-party

partners, had

a material

impact on

our

business, operations or financial results. See “Item 3D – Risk Factors” for additional information

about digital and cyber security risks.

Cyber security Governance

Our

board of

directors oversees

the

company’s

internal control

and

overall risk

management and

assurance, and

through

its audit

committee,

reviews

and

monitors

the

effectiveness

the

ERM

framework,

which

has

identified

cyber

security

one

the

top

enterprise risks. The board and

audit committee discuss the

company’s ERM framework, and three-lines

of control model and learnings

from risk-adjusting actions and assurance activities on a bi-annual basis.

The board of directors’

safety, sustainability and ethics committee

(SSEC) is primarily responsible

for the oversight of

cyber security risk

management, including review

of the company’s

practices and performance

related to cyber

security, and updates the

board of directors

on any matters

of concern that

become apparent in

the exercise of

its duties. The

SSEC reviews and

assesses at least

annually the

developments, implementation, effectiveness

and practice of

the company’s cyber

security policies, programmes

and strategies, and

the

effectiveness

internal

controls

for

cyber

security

matters,

including

applicable

management

systems,

policies,

practices,

processes, leadership,

and culture,

and summarizes

its assessments

in an

annual report

to the

board of

directors. The

SSEC also

receives regular

briefings and

updates from

the Executive

Vice President

for Safety,

Security &

Sustainability (EVP

SSU) relating

material risks from cyber security threats and management of cyber security-related risks.

We use a three-line

model for risk management (including

cyber security risk) in which

employees and management work together

contribute to

creation and

protection of

value. As

the first

line-of-control, cyber

security risk

is managed

in the

business areas

as an

integral

part of

employee

and manager

tasks.

Technical

experts

in each

business area

are

responsible for

monitoring the

relevant

business area’s

cyber security

risks and

performance, conducting

assessments and

ensuring a

suitable and

effective

management

system that reflects the relevant business area’s business scope and context, risks and external regulatory requirements. The first line

shares its experiences and findings in

a systematic way with the second

line. The responsibility for reporting material

risks from cyber

security

threats,

regularly and

systematically,

follows the

accountability

the

business

areas up

their

respective

executive

vice

presidents. The executive vice presidents of the

business areas meet with the EVP SSU

bi-annually to review top enterprise risk

from

cyber security threats.

The second

line-of-control oversees

cyber security

risks, performance

and assurance

across the

company and

provides advice

and

support to the first

line in identifying and executing

assurance activities and monitors,

supports and challenges the first

line in relation

performance

and

management

cyber

security

risks.

The EVP

SSU

leads

the

second

line-of-control for

cyber

security-related

matters and oversees

cyber security risks

across the company

and reports to

the Corporate Executive

Committee (CEC) and

the SSEC.

The Chief

Security Officer

(CSO) and

Chief Information

Security Officer

(CISO) assist

the EVP

SSU in

the day-to-day

monitoring of

cyber security risks, which are reported to

the CEC. The CEC is responsible for

reviewing and approving the strategy and resourcing

cyber

security

risk

management.

Our

current

EVP

SSU

holds

Master’s

degree

Cybernetics

and

Process

Automation

and

Bachelor’s

degree

Automation

from

the

Rogaland

Regional

College/University

Stavanger.

She

has

held

number

central

leadership positions

within operations,

projects and

technology since

she joined

Equinor in

1999, including

Chief Operating

Officer,

where she drove the company’s digital transformation.

Our third line-of-control is the corporate audit unit which performs independent audits across

business areas and management roles,

including cyber security audits, and reports to the board of directors on a periodic basis.

ITEM 17. FINANCIAL STATEMENTS

The Company has responded to Item 18 in lieu of this item

ITEM 18. FINANCIAL STATEMENTS

The audited consolidated financial statements as required under Item 18 are attached hereto starting on page 74 of

this 2023 Form

20-F. The audit report of Ernst & Young

AS, an independent registered accounting firm, is included herein preceding the

audited

Consolidated Financial Statements.

Equinor 2023 Annual Report on Form 20-F

ITEM 19. EXHIBITS

Exhibit no

Description

Exhibit 1

Articles of Association of Equinor ASA, as amended, effective from 10 May 2023 (English Translation).

Exhibit 2.1

Description of Securities registered under Section 12 of the Exchange Act.

Exhibit 2.2

Form of Indenture among Equinor ASA (formerly known as Statoil ASA and StatoilHydro ASA), Equinor Energy AS

(formerly known as Statoil Petroleum AS and StatoilHydro Petroleum AS) and Deutsche Bank Trust Company

Americas (incorporated by reference to Exhibit 4.1 of Equinor ASA's (formerly known as Statoil ASA) and Equinor

Energy AS's (formerly known as Statoil Petroleum AS) Post - Effective Amendment No.1 to their Registration

Statement on Form F-3 (File No. 333-143339) filed with the Commission on 2 April 2009).

Exhibit 2.3

Supplemental Indenture No. 3 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K (File

No. 001-15200) filed with the Commission on 10 September 2018)

Exhibit 2.4

Form of Supplemental Indenture No. 4 (incorporated by reference to Exhibit 4.1 of Equinor ASA’s Report on Form 6-K

(File No. 001-15200) filed with the Commission on 13 November 2019)

Exhibit 2.5

Amended and Restated Agency Agreement, dated as of 11 May 2023, by and among Equinor ASA, as Issuer,

Equinor Energy AS, as Guarantor, the Bank of New York Mellon, London Branch, as Agent and the Bank of New York

Mellon SA/NV, Luxembourg Branch, as Paying Agent in respect of a €20,000,000 Euro Medium Term Note

Programme.

Exhibit 2.6

Deed of Covenant, dated as of 13 May 2020, of Equinor ASA in respect of a €20,000,000 Euro Medium Term Notes

Programme. (incorporated by reference to Exhibit 2.6 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200) filed

with the Commission on March 19, 2021)

Exhibit 2.7

Deed of Guarantee, dated as of 13 May 2020, of Equinor Energy AS in respect of a €20,000,000 Euro Medium Term

Notes Programme (incorporated by reference to Exhibit 2.7 of Equinor ASA’s 2020 Form 20-F (File no. 001-15200)

filed with the Commission on March 19, 2021).

Exhibit 4(a)(i)

Technical Services Agreement between Gassco AS and Equinor Energy AS (formerly known as Statoil Petroleum

AS), dated November 24, 2010 (incorporated by reference to Exhibit 4(a)(i) of Equinor's (formerly known as Statoil)

2016 Form 20-F (File no. 001-15200) filed with the Commission on March 17, 2017).

Exhibit 4(a)(ii)

Amendment no. 1, 2, 3, 4, 5 and 6, dated 17 October 2010, 19 February 2013, 15 December 2012, 17 September

2014, 15 December 2017 and 22 December 2017, respectively, to Technical Services Agreement between Gassco

AS and Equinor Energy AS (formerly known as Statoil Petroleum AS), dated November 24, 2010 (incorporated by

reference to Exhibit 4(a)(ii) of Equinor's (formerly known as Statoil) 2017 Form 20-F (File no. 001-15200) filed with the

Commission on March 23, 2018).

Exhibit 4(c)

Employment agreement with Anders Opedal as of 9 August 2020 (incorporated by reference to Exhibit 4(c) of Equinor

ASA’s 2020 Form 20-F (File no. 001-15200) filed with the Commission on March 19, 2021).

Exhibit 8

List of subsidiaries

Exhibit 11

Code of Conduct

Exhibit 12.1

Rule 13a-14(a) Certification of the Chief Executive Officer

Exhibit 12.2

Rule 13a-14(a) Certification of Chief Financial Officer

Exhibit 13.1

Rule 13a-14(b) Certification of the Chief Executive Officer

)

Exhibit 13.2

Rule 13a-14(b) Certification of the Chief Financial Officer

)

Exhibit 15.1

Consent of EY AS

Exhibit 15.2

Consent of DeGolyer and MacNaughton

Exhibit 15.3

Report of DeGoyler and MacNaughton

Exhibit 15.4

Equinor 2023 Integrated Annual Report

Exhibit 15.5

Oil and gas reserves report

Exhibit 15.6

Exhibit 15.7

Exhibit 15.8

Remuneration Report

Board statement on corporate governance

Clawback policy

Exhibit 17

List of guarantor subsidiaries

Exhibit 101

Interactive Data Files (formatted in Inline XBRL

(Extensible Business Reporting Language)). Submitted

electronically

with the 2023 Form 20-

Exhibit 104

Cover Page Interactive Data File (formatted as Inline

XBRL and contained in Exhibit 101).

Furnished only.

The total amount of long term debt securities of Equinor

ASA and its subsidiaries authorised under instruments

other than those listed above does not exceed

10%

of the total assets of Equinor ASA and its subsidiaries on

a consolidated basis. The company agrees to furnish

copies of any such instruments to the Commission

upon request.

Equinor 2023 Annual Report on Form 20-F

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it

has duly caused and

authorised the undersigned to sign this annual report on its behalf.

EQUINOR ASA

(Registrant)

By:

/s/ TORGRIM REITAN

Name:

Torgrim Reitan

Title:

Executive Vice President and Chief Financial Officer

Dated: 21 March 2024

Equinor 2023 Annual Report on Form 20-F

The reports set out below are provided in accordance with standards of the Public Company Accounting

Oversight Board (United

States). Ernst & Young AS (PCAOB ID:

1572

) has also issued a report in accordance with law, regulations, and auditing standards

and practices generally accepted in Norway, including International Standards on Auditing (ISAs), which includes opinions on the

Consolidated financial statements and the parent company financial statements of Equinor ASA, and

on other required matters. That

report is not included in this 2023 Form 20-F, but only in the 2023 Annual report.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Equinor ASA and its subsidiaries (Equinor or the

Company) as of

31 December 2023 and 2022, the related consolidated statements of income, comprehensive income, changes

in equity and cash

flows for each of the three years in the period ended 31 December 2023, and the related notes (collectively

referred to as the

“Consolidated Financial Statements”). In our opinion, the Consolidated Financial Statements present

fairly, in all material respects, the

financial position of the Company as of 31 December 2023

and 2022, and the results of its operations and its cash flows for each of

the three years in the period ended 31 December 2023, in conformity with IFRS Accounting

Standards as issued by the International

Accounting Standards Board (IASB) and in conformity with IFRS Accounting Standards as adopted by the

European Union.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States)

(PCAOB), the Company's internal control over financial reporting as of 31 December 2023, based

on criteria established in Internal

Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework),

and our report dated 12 March 2024 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility

is to express an opinion on the

Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to

be independent with respect to the Company in accordance with the U.S. federal securities

laws and the applicable rules and

regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require

that we plan and perform the

audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free

of material misstatement,

whether due to error or fraud. Our audits included performing procedures to assess the risks

of material misstatement of the

Consolidated Financial Statements, whether due to error or fraud, and performing procedures that

respond to those risks. Such

procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the Consolidated

Financial

Statements. Our audits also included evaluating the accounting principles used and significant

estimates made by management, as

well as evaluating the overall presentation of the Consolidated Financial Statements. We believe that our audits provide

a reasonable

basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period

audit of the Consolidated Financial

Statements that were communicated to the audit committee and that: (1) relate to accounts or disclosures

that are material to the

Consolidated Financial Statements and (2) involved our especially challenging, subjective or complex judgments.

The communication

of critical audit matters does not alter in any way our opinion on the Consolidated Financial Statements,

taken as a whole, and we are

not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or

disclosures to which they relate.

Equinor 2023 Annual Report on Form 20-F

Recoverable amounts of production plants and oil and gas assets including assets under development

Description of

the Matter

As of 31 December 2023, the Company has recognised production plants and oil and gas assets,

including assets under development, of USD 39,585 million and USD 13,980 million, respectively,

within Property, plant and equipment. Refer to Note 14 to the Consolidated Financial Statements

for the related disclosures. As described in Note 14, determining the recoverable amount of an

asset involves an estimate of future cash flows, which is dependent upon management’s best

estimate of the economic conditions that will exist over the asset’s useful life. The asset’s

operational performance and external factors have a significant impact on the estimated future

cash flows and therefore, the recoverable amount of the asset.

Auditing management’s estimate of the recoverable amount of production plants and oil and gas

assets is complex and involves a high degree of judgement. Significant assumptions used in

forecasting future cash flows are future commodity prices, currency exchange rates, expected

reserves, capital expenditures, and the discount rate.

These significant assumptions are forward-looking and can be affected by future economic and

market conditions, including matters related to climate change and energy transition. As described

in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate

change and the potential impact of the energy transition are relevant to some of the economic

assumptions in the Company’s estimation of future cash flows. Climate considerations are included

directly in the impairment assessments by estimating the carbon costs in the cash flows, and

indirectly as the expected effects of the climate change are included in the estimated commodity

prices. As also described in Note 3, commodity price assumptions applied in value-in-use

impairment testing are based on management’s best estimate, which differs from the price-set

required to achieve the goals of the Paris Agreement as described in the International

Energy

Agency (IEA) World Energy Outlook’s Announced Pledges Scenario, or the Net Zero Emissions by

2050 Scenario. The impact of the energy transition and potential restrictions by regulators, market

and strategic considerations may also have an effect on the estimated production profiles and the

economic lifetime of the Company’s assets and projects.

Additionally, the treatment of tax in the estimation of the recoverable amount is challenging, as the

Company is subject to different tax structures that are inherently complex, particularly in Norway.

How We

Addressed the

Matter in Our

Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of

controls over the Company’s process for evaluating the recoverability of production plants and oil

and gas assets including assets under development. This included testing controls over

management’s review of assumptions and inputs to the assessments of impairment and

impairment reversals.

Our audit procedures performed over the significant assumptions and inputs included, among

others, evaluation of the methods and models used in the calculation of the recoverable

amount.

We also evaluated the relevant tax effects based on the local legislation of the relevant

jurisdictions, particularly in Norway, and tested the clerical accuracy of the models through

independently recalculating the value in use. We involved valuation specialists to assist us with

these procedures. In addition, we compared projected capital expenditures to approved operator

budgets or management forecasts. For those assets previously impaired, we compared actual

results to the forecasts used in historical impairment analyses. We also compared expected

reserve volumes with internal production forecasts and external evaluations of expected reserves

and we compared the historical production with management’s previous production forecasts, with

the involvement of our reserves specialists.

To test price assumptions, we evaluated management’s methodology to determine future

commodity prices and compared such assumptions to external benchmarks, among other

procedures. We involved valuation specialists to assist in evaluating the reasonableness of the

Company’s assessment of currency exchange rates and the discount rate, by assessing the

Company’s methodologies and key assumptions used to calculate the rates and by comparing

those rates with external information. We also evaluated management’s methodology to factor

climate-related matters into their determination of future commodity price assumptions.

To test carbon cost assumptions, with the involvement of climate change and sustainability

specialists, we evaluated management’s methodology to determine future carbon costs, including

assessing the impact from climate-related matters, and compared management’s assumptions

with the current legislation in place in the relevant jurisdictions and the jurisdictions’ announced

pledges regarding escalation of carbon costs.

We evaluated management’s sensitivity analyses over its future commodity prices and carbon cost

assumptions by taking into consideration, among other sources, the Net Zero Emissions by

2050

Scenario and Announced Pledges Scenario estimated by the International Energy Agency

(IEA).

We have also evaluated management’s disclosures related to the consequences of initiatives to

limit climate change, including the effects of the Company’s climate change strategy on the

Equinor 2023 Annual Report on Form 20-F

Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty,

discussed in more detail in Notes 3 and 14.

Estimation of the asset retirement obligations

Description of

the Matter

As of 31 December 2023, the Company has recognised a provision for decommissioning and

removal activities of USD 12,360 million classified within Provisions and other liabilities. Refer to

Note 23 to the Consolidated Financial Statements for the related disclosures. As described in Note

23, the appropriate estimates for such obligations are based on historical knowledge combined

with knowledge of ongoing technological developments, expectations about future regulatory and

technological development and involve the application of judgement and an inherent risk of

significant adjustments. The estimated costs of decommissioning and removal activities require

revisions due to changes in current regulations and technology while considering relevant risks

and uncertainties.

Auditing management’s estimate of the decommissioning and removal of offshore installations at

the end of the production period is complex and involves a high degree of judgement. Determining

the provision for such obligations involves application of considerable judgement related to the

assumptions used in the estimate, the inherent complexity and uncertainty in estimating future

costs, and the limited historical experience against which to benchmark estimates of future costs.

Significant assumptions used in the estimate are the discount rates and the expected future costs,

which include the underlying assumptions norms and rates, and time required to decommission

and can vary considerably depending on the expected removal complexity.

These significant assumptions are forward-looking and can be affected by future economic and

market conditions, including matters related to climate change and energy transition. As described

in Note 3 to the Consolidated Financial Statements, the effects of the initiatives to limit climate

change and the potential impact of the energy transition are relevant to some of the economic

assumptions in the Company’s estimation of future cash flows. The impact of the energy transition

and potential restrictions by regulators, market and strategic considerations may also

have an

effect on the estimated economic lifetime of the Company’s assets and projects. If the Company’s

business cases for the oil and gas producing assets in the future should change materially

due to

governmental initiatives to limit climate change, it could affect the timing of cessation of the assets

and the asset retirement obligations (ARO).

How We

Addressed the

Matter in Our

Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of

controls over the Company’s process to calculate the present value of the estimated future

decommissioning and removal expenditures determined in accordance with local conditions and

requirements. This included testing controls over management’s review of assumptions described

above, used in the calculation of the ARO.

To test management’s estimation of the provision for decommissioning and removal activities, our

audit procedures included, among others, evaluating the completeness of the provision by

comparing significant additions to property, plant and equipment to management’s assessment of

new ARO obligations recognized in the period.

To assess the expected future costs, among other procedures, we compared day rates for rigs,

marine operations and heavy lift vessels to external market data or existing contracts. For time

required to decommission, we compared the assumptions against historical data. We compared

discount rates to external market data. With the support of our valuation specialists, we evaluated

the methodology and models used by management to estimate the ARO and performed

sensitivity analysis on the significant assumptions. In addition, we recalculated the formulas in the

models.

We evaluated management’s sensitivity analyses over the effect of performing removal five years

earlier than currently scheduled due to potential governmental initiatives to limit climate change.

We have also evaluated management’s disclosures related to the consequences of initiatives to

limit climate change, including the effects of the Company’s climate change strategy on the

Consolidated Financial Statements and the energy transition’s effects on estimation uncertainty,

discussed in more detail in Notes 3 and 23.

/s/

Ernst & Young AS

We have served as the Company’s auditor since 2019.

Stavanger, Norway

12 March 2024

Equinor 2023 Annual Report on Form 20-F

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Equinor ASA

Opinion on Internal Control over Financial Reporting

We have audited Equinor ASA and subsidiaries’ (the Company)

internal control over financial reporting as at 31 December 2023,

based on criteria established in Internal Control—Integrated Framework issued by the Committee

of Sponsoring Organizations of the

Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects,

effective internal control over financial reporting as at 31 December 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States)

(PCAOB), the 2023 Consolidated Financial Statements of the Company, and our report dated 12 March 2024 expressed an

unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment

the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal

Control

over Financial Reporting as set out in Item 15. Controls and Procedures.

Our responsibility is to express an opinion on the Company’s

internal control over financial reporting based on our audit. We are a public accounting firm registered with

the PCAOB and are

required to be independent with respect to the Company in accordance with the U.S. federal securities

laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan

and perform the audit

to obtain reasonable assurance about whether effective internal control over financial reporting was maintained

in all material

respects. Our audit included obtaining an understanding of internal control over financial reporting,

assessing the risk that a material

weakness exists, testing and evaluating the design and operating effectiveness of internal control based

on the assessed risk, and

performing such other procedures as we considered necessary in the circumstances. We believe that our

audit provides a reasonable

basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of

financial reporting and the preparation of financial statements for external purposes in accordance with generally

accepted accounting

principles. A company’s internal control over financial reporting includes those policies and procedures that (1)

pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the

company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation

of financial statements

in accordance with generally accepted accounting principles, and that receipts and expenditures

of the company are being made only

in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance

regarding

prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could

have a material effect

on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or

detect misstatements. Also, projections

of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate

because of changes in

conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young AS

Stavanger, Norway

12 March 2024

Equinor Annual Report on Form 20-F 2023

Consolidated financial statements of the Equinor group

CONSOLIDATED STATEMENT

OF INCOME

Full year

(in USD million)

Note

2023

2022

2021

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

(1)

620

259

Other income

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

Purchases [net of inventory variation]

(48,175)

(53,806)

(35,160)

Operating expenses

(10,582)

(9,608)

(8,598)

Selling, general and administrative expenses

(1,218)

(986)

(780)

Depreciation, amortisation and net impairment

12, 13,

(10,634)

(6,391)

(11,719)

Exploration expenses

(795)

(1,205)

(1,004)

Total operating expenses

(71,404)

(71,995)

(57,261)

Net operating income/(loss)

35,770

78,811

33,663

Interest income and other financial income

2,449

1,222

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Other financial items

1,325

(50)

(895)

Net financial items

2,114

(207)

(2,080)

Income/(loss) before tax

37,884

78,604

31,583

Income tax

(25,980)

(49,861)

(23,007)

Net income/(loss)

11,904

28,744

8,576

Attributable to shareholders of the company

11,885

28,746

8,563

Attributable to non-controlling interests

(3)

Basic earnings per share (in USD)

3.93

9.06

2.64

Diluted earnings per share (in USD)

3.93

9.03

2.63

Equinor Annual Report on Form 20-F 2023

CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME

Full year

(in USD million)

Note

2023

2022

2021

Net income/(loss)

11,904

28,744

8,576

Actuarial gains/(losses) on defined benefit pension

plans

(276)

461

147

Income tax effect on income and expenses recognised

in OCI

(105)

(35)

Items that will not be reclassified to the Consolidated

statement of income

(211)

356

111

Foreign currency translation effects

(587)

(3,609)

(1,052)

Share of OCI from equity accounted investments

(113)

424

Items that may subsequently be reclassified to the Consolidated

statement of income

(701)

(3,186)

(1,052)

Other comprehensive income/(loss)

(911)

(2,829)

(940)

Total comprehensive income/(loss)

10,992

25,914

7,636

Attributable to the shareholders of the company

10,974

25,917

7,622

Attributable to non-controlling interests

(3)

Other Comprehensive Income (OCI).

Equinor Annual Report on Form 20-F 2023

CONSOLIDATED BALANCE SHEET

At 31 December

(in USD million)

Note

2023

2022

ASSETS

Property, plant and equipment

58,822

56,498

Intangible assets

5,709

5,158

Equity accounted investments

2,508

2,758

Deferred tax assets

7,936

8,732

Pension assets

1,260

1,219

Derivative financial instruments

559

691

Financial investments

3,441

2,733

Prepayments and financial receivables

1,291

2,063

Total non-current assets

81,525

79,851

Inventories

3,814

5,205

Trade and other receivables

16,933

22,452

Derivative financial instruments

1,378

4,039

Financial investments

29,224

29,876

Cash and cash equivalents

9,641

15,579

Total current assets

60,990

77,152

Assets classified as held for sale

1,064

1,018

Total assets

143,580

158,021

EQUITY AND LIABILITIES

Shareholders’ equity

48,490

53,988

Non-controlling interests

Total equity

48,500

53,989

Finance debt

22,230

24,141

Lease liabilities

2,291

2,409

Deferred tax liabilities

13,345

11,996

Pension liabilities

3,925

3,671

Provisions and other liabilities

15,304

15,633

Derivative financial instruments

1,795

2,376

Total non-current liabilities

58,890

60,226

Trade, other payables and provisions

11,870

13,352

Current tax payable

12,306

17,655

Finance debt

5,996

4,359

Lease liabilities

1,279

1,258

Dividends payable

2,649

2,808

Derivative financial instruments

1,619

4,106

Total current liabilities

35,719

43,539

Liabilities directly associated with the assets classified

as held for sale

471

268

Total liabilities

95,080

104,032

Total equity and liabilities

143,580

158,021

Equinor Annual Report on Form 20-F 2023

Of which Trade receivables of USD

13,017

million in 2023 and USD

17,334

million in 2022.

Includes collateral deposits of USD

1,572

million for 2023 related to certain requirements

set out by exchanges where Equinor is

participating. The corresponding figure for 2022 is

USD

6,128

million.

Equinor Annual Report on Form 20-F 2023

CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY

(in USD million)

capital

Additional

paid-in

capital

Retained

earnings

Foreign

currency

translation

reserve

OCI from equity

accounted

investments

Shareholders'

equity

Non-

controlling

interests

Total equity

At 1 January 2021

1,164

6,852

30,050

(4,194)

33,873

33,892

Net income/(loss)

8,563

8,576

Other comprehensive income/(loss)

111

(1,052)

(940)

Total comprehensive income/(loss)

7,636

Dividends

(2,041)

Share buy-back

(429)

Other equity transactions

(15)

(18)

(33)

At 31 December 2021

1,164

6,408

36,683

(5,245)

39,010

39,024

Net income/(loss)

28,746

(3)

28,744

Other comprehensive income/(loss)

356

(3,609)

424

(2,829)

Total comprehensive income/(loss)

25,914

Dividends

(7,549)

Share buy-back

(22)

(3,358)

(3,380)

Other equity transactions

(10)

(20)

At 31 December 2022

1,142

3,041

58,236

(8,855)

424

53,988

53,989

Net income/(loss)

11,885

11,904

Other comprehensive income/(loss)

(211)

(587)

(113)

(911)

Total comprehensive income/(loss)

10,992

Dividends

(10,783)

Share buy-back

(42)

(3,037)

(2,606)

(5,685)

Other equity transactions

(3)

(10)

(13)

At 31 December 2023

1,101

56,521

(9,442)

310

48,490

48,500

OCI items from equity accounted investments

that may subsequently be reclassified to the Consolidated

statement of income, are

presented as part of OCI from equity accounted

investments. OCI items that will not be reclassified

to the Consolidated statements of income

will be included in retained earnings.

Please refer to note 20 Shareholders’ equity,

capital distribution and earnings per share for more

details.

Equinor Annual Report on Form 20-F 2023

CONSOLIDATED STATEMENT

OF CASH FLOWS

Full year

(in USD million)

Note

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Depreciation, amortisation and net impairment

12, 13, 14

10,634

6,391

11,719

Exploration expenditures written off

(53)

342

171

(Gains)/losses on foreign currency transactions and

balances

(852)

(2,088)

(47)

(Gains)/losses on sale of assets and businesses

(823)

(1,519)

(Increase)/decrease in other items related to operating

activities

(1,313)

468

106

(Increase)/decrease in net derivative financial instruments

1,041

1,062

539

Interest received

1,710

399

Interest paid

(1,042)

(747)

(698)

Cash flows provided by operating activities before

taxes paid and working capital items

48,016

83,608

41,950

Taxes paid

(28,276)

(43,856)

(8,588)

(Increase)/decrease in working capital

4,960

(4,616)

(4,546)

Cash flows provided by operating activities

24,701

35,136

28,816

Cash used in business combinations

(1,195)

147

(111)

Capital expenditures and investments

(10,575)

(8,758)

(8,040)

(Increase)/decrease in financial investments

443

(10,089)

(9,951)

(Increase)/decrease in derivative financial instruments

(1,266)

1,894

(1)

(Increase)/decrease in other interest-bearing items

(87)

(23)

Proceeds from sale of assets and businesses

272

966

1,864

Cash flows provided by/(used in) investing activities

(12,409)

(15,863)

(16,211)

Repayment of finance debt

(2,818)

(250)

(2,675)

Repayment of lease liabilities

(1,422)

(1,366)

(1,238)

Dividends paid

(10,906)

(5,380)

(1,797)

Share buy-back

(5,589)

(3,315)

(321)

Net current finance debt and other financing activities

2,593

(5,102)

1,195

Cash flows provided by/(used in) financing activities

(18,142)

(15,414)

(4,836)

Net increase/(decrease) in cash and cash equivalents

(5,850)

3,860

7,768

Foreign currency translation effects

(87)

(2,268)

(538)

Cash and cash equivalents at the beginning

of the period (net of overdraft)

15,579

13,987

6,757

Cash and cash equivalents at the end of the

period (net of overdraft)

9,641

15,579

13,987

The line item mainly consists of provisions, unrealised

gains and losses and items of income

or expense for which the cash effects are

included in increase/(decrease) in working capital within

operating cash flow and investing cash flows. In

2023 the main item is related to

interest income and expense included in the line

item interest received and interest paid. In 2022

the line item includes

a fair value loss

related to inventory of USD

672

million. The amount for 2021 includes USD (

822

) million in redetermination settlement for the Agbami

field.

At 31 December 2023 and 2022 cash and cash

equivalents net overdraft was

zero

. At 31 December 2021 cash and cash equivalents

included a net overdraft of USD

140

million.

Interest paid

in cash flows provided by operating activities

excludes capitalised interest of USD

468

million, USD

382

million, and USD

334

million for the years ending 31 December 2023, 2022

and 2021, respectively. Capitalised interest is included in Capital expenditures

and

Equinor Annual Report on Form 20-F 2023

investments in cash flows used in investing activities.

Total interest paid amounts to USD

1,510

million, USD

1,129

million, and USD

1,032

million for the years 2023, 2022 and 2021, respectively.

Equinor Annual Report on Form 20-F 2023

Notes to the Consolidated financial statements

Table of contents for notes to the financial statements

Organisation

Accounting policies

Climate change and energy transition

Financial risk and capital management

Segments

Acquisitions and disposals

Total revenues and other income

Salaries and personnel expenses

Auditor’s remuneration and Research and development expenditures

Financial items

Income taxes

Property, plant and equipment

Intangible assets

Impairments

Joint arrangements and associates

Financial investments and financial receivables

Inventories

Trade and other receivables

Cash and cash equivalents

Shareholders’ equity, capital distribution and earnings per share

Finance debt

Pensions

Provisions and other liabilities

Trade, other payables and provisions

Leases

Other commitments, contingent liabilities and contingent assets

Related parties

Financial instruments and fair value measurement

Subsequent events

Equinor Annual Report on Form 20-F 2023

1 Organisation

The Equinor Group (Equinor) consists of Equinor ASA and its subsidiaries.

Equinor ASA

is incorporated and domiciled in

Norway

and

listed on the Oslo Børs (

Norway

) and the New York Stock Exchange (USA). The address of its registered office is

Forusbeen 50, N-

4035 Stavanger, Norway

Equinor’s objective is to develop, produce and market various forms of energy and derived products and services, as well as other

businesses. The activities may also be carried out through participation in or cooperation with other companies.

Equinor Energy AS, a

100

% owned operating subsidiary of Equinor ASA and owner of all of Equinor's oil

and gas activities and net assets on the Norwegian

continental shelf, is co-obligor or guarantor for certain debt obligations of Equinor ASA.

The Consolidated financial statements of Equinor for the full year 2023

were approved for issuance by the board of directors on 12

March 2024 and is subject to approval by the annual general meeting on 14 May 2024.

2 Accounting policies

Statement of compliance

The Consolidated financial statements of Equinor ASA and its subsidiaries (Equinor) have been

prepared in accordance with IFRS

Accounting Standards as adopted by the European Union (EU) and with IFRS Accounting Standards

as issued by the International

Accounting Standards Board (IASB), IFRIC® Interpretations issued by IASB and the additional requirements

of the Norwegian

Accounting Act, effective on 31 December 2023.

Basis of preparation

The Consolidated financial statements are prepared on the historical cost basis with some exceptions where fair

value measurement

is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes. The

material accounting

policies described in these Consolidated financial statements have been applied consistently to

all periods presented.

Certain amounts in the comparable years have been restated or reclassified to conform to current

year presentation. All amounts in

the Consolidated financial statements are denominated in USD millions, unless otherwise specified. The subtotals

and totals in some

of the tables in the notes may not equal the sum of the amounts shown in the primary

financial statements due to rounding.

The line items included in Total operating expenses in the Consolidated statement of income are presented as a combination of

function and nature in conformity with industry practice. Purchases [net of inventory variation]

and Depreciation, amortisation and net

impairments are presented on separate lines based on their nature, while Operating expenses

and Selling, general and administrative

expenses as well as Exploration expenses are presented on a functional basis. Significant

expenses such as salaries, pensions, etc.

are presented by their nature in the notes to the Consolidated financial statements.

Basis of consolidation

The Consolidated financial statements include the accounts of Equinor ASA and its subsidiaries

as well as Equinor’s interests in jointly

controlled and equity accounted investments. All intercompany balances and transactions, including unrealised

profits and losses

arising from Equinor's internal transactions, have been eliminated.

Foreign currency translation

Foreign exchange differences arising on translation of transactions, assets and liabilities to the functional currency of individual

entities in Equinor are recognised in the Consolidated statement of income as foreign exchange

gains or losses within Net financial

items. However, foreign exchange differences arising from the translation of estimate-based provisions are generally accounted for as

part of the change in the underlying estimate.

When preparing the Consolidated financial statements, the financial statements of entities with functional currencies other

than the

Group’s presentation currency USD are translated into USD, and the foreign exchange differences are recognised separately in

the

Consolidated statement of comprehensive income within Other comprehensive income (OCI). The cumulative amount

of such

translation differences relating to an entity is reclassified to the Consolidated statement of income and reflected as a part of

the gain or

loss on disposal of that entity.

Loans from Equinor ASA to subsidiaries and equity accounted investments with other functional

currencies than the parent company,

and for which settlement is neither planned nor likely in the foreseeable future, are considered part

of the parent company’s net

investment in the subsidiary. Foreign exchange differences arising on such loans are recognised in OCI in the Consolidated financial

statements.

Statement of cash flows

Equinor Annual Report on Form 20-F 2023

In the statement of cash flows, operating activities are presented using the indirect method, where Income/(loss)

before tax is adjusted

for changes in inventories and operating receivables and payables, the effects of non-cash items such as depreciations, amortisations

and impairments, provisions, unrealised gains and losses and undistributed profits from associates, and items

of income or expense

for which the cash effects are investing or financing cash flows. Increase/decrease in financial investments,

derivative financial

instruments, and other interest-bearing items are all presented net as part of Investing activities, either because

the transactions are

financial investments and turnover is quick, the amounts are large, and the maturities are short,

or due to materiality.

--------------------------------------------------------------------------------------------------------------------------------

Accounting judgement and key sources of estimation uncertainty

The preparation of the Consolidated financial statements requires management to make accounting

judgements, estimates and

assumptions.

Information about judgements

made in applying the accounting policies that have the most significant effects

on the amounts

recognised in the Consolidated financial statements is described in the following notes:

Note 6 – Acquisitions and disposals

Note 7 – Total revenues and other income

Note 25 – Leases

Estimates used in the preparation of these Consolidated financial statements are prepared based on customised models.

The

assumptions on which the estimates are based rely on historical experience, external sources of information

and various other factors

that management assesses to be reasonable under the current conditions and circumstances. These

estimates and assumptions form

the basis of making the judgements about carrying values of assets and liabilities

when these are not readily apparent from other

sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an

on-going

basis considering the current and expected future set of conditions.

Equinor is exposed to several underlying economic factors affecting the overall results, such as commodity

prices, foreign currency

exchange rates, market risk premiums and interest rates as well as financial instruments with

fair values derived from changes in

these factors. The effects of the initiatives to limit climate changes and the potential impact of the energy transition

are relevant to

several of these economic assumptions. In addition, Equinor's results are influenced by the level

of production, which in the short term

may be influenced by, for instance, maintenance programmes. In the long-term, the results are impacted by the success of

exploration, field developments and operating activities.

The most important matters in understanding the key sources of estimation uncertainty

are described in each of the following notes:

Note 3 – Climate change and energy transition

Note 11 – Income taxes

Note 12 – Property, plant and equipment

Note 13 – Intangible assets

Note 14 – Impairments

Note 23 – Provisions and other liabilities

Note 26 – Other commitments, contingent liabilities and contingent assets

--------------------------------------------------------------------------------------------------------------------------------

Adoption of new IFRS Accounting Standards, amendments to IFRS Accounting Standards

and IFRIC Interpretations

New IFRS Accounting Standards, amendments to IFRS Accounting Standards and IFRIC Interpretations effective and adopted

Equinor from 1 January 2023 do not have significant impact on Equinor’s Consolidated

financial statements upon adoption. This

includes among others IFRS 17 Insurance Contracts and amendments to IAS 12 International Tax Reform – Pillar Two Model Rules

(top-up tax).

IFRS Accounting Standards, amendments to IFRS Accounting Standards,

and IFRIC Interpretations issued, but not yet effective, are

either not expected to materially impact Equinor's Consolidated financial statements upon adoption or are

not expected to be relevant.

Equinor has not early adopted any IFRS Accounting Standard, amendments to IFRS Accounting Standards, or IFRIC

Interpretations

issued, but not yet effective.

3 Climate change and energy transition

Risks arising from climate change and the transition to a lower carbon economy

Policy, legal, regulatory,

market and technology developments related to climate change, can affect Equinor’s business plans

and

financial performance. Shifts in stakeholder focus between energy security, affordability and sustainability add uncertainty to delivery

and outcomes associated with Equinor’s strategy. In its long-term planning, Equinor analyses how the global energy markets may

develop, such as future changes in demand for Equinor’s products (oil, gas and

power in key markets). Commodity price sensitivities

Equinor Annual Report on Form 20-F 2023

are presented in a table below, including the World Energy Outlook 2023 (WEO) scenarios presented by International Energy Agency

(IEA), and in note 14 Impairments.

Equinor assesses climate risk from two perspectives: transition risk, which relates to the financial robustness

of the company’s

business model and portfolio in various decarbonisation scenarios; and physical climate risk, which relates

to the exposure and

potential vulnerability of Equinor’s assets to climate-related perils in different climate change scenarios. Equinor’s

net-zero strategy

and climate related ambitions are responses to the challenges and opportunities presented by the

energy transition. Below is a

summary of relevant risks and risk adjusting actions:

Risks – upsides and downsides

Risk adjusting actions

Transition risks

●

Stricter climate laws, regulations,

and policies as well

as adverse litigation outcomes could adversely impact

Equinor's financial results and outlook, including the

value of its assets. These might be direct impacts, or

indirect impacts through changes in consumer

behaviour or technology developments.

●

Changing demand and more cost-competitive

solutions for renewable energy and low-carbon

solutions represent both threats and opportunities for

Equinor future value creation and the value of

Equinor’s assets.

●

Multiple factors in the energy transition contribute to

uncertainty in future energy price assumptions and

changes in investor and societal sentiment can affect

Equinor’s access to capital markets and financing

costs.

●

Strong competition for assets, changing levels of

policy support, and different commercial/contractual

models may lead to diminishing returns within the

renewable and low carbon industries and hinder

Equinor ambitions. These investments may be

exposed to interest rate risk and inflation risk.

●

Equinor sees opportunities for value creation in the

energy transition both through optimisation of

Equinor’s oil and gas business and through utilising its

competitive capabilities across new areas of the

energy system. In a decarbonising world with a broad

energy mix, the expectation is that policymakers and

stakeholders will set a premium on oil and gas

produced in a responsible and increasingly carbon

efficient way.

●

Equinor monitors trends in relevant policies and

regulations and addresses regulatory and policy risk

in capital investment processes and through

enterprise risk management in the business line.

●

Equinor has developed its corporate strategy and

Energy transition plan (ETP) to demonstrate

commitment to a low carbon business transformation

that balances investor and societal expectations.

●

Equinor includes actual or default minimum carbon

pricing across investments, applies price robustness

criteria and routinely stress tests the portfolio for

different future price scenarios towards net zero.

Hurdle rates and other financial sensitivity testing are

included in decision making.

●

Equinor has presented an ambitious abatement plan

to reduce absolute emissions and emissions

intensity from its activities.

●

Equinor assesses climate-related risks related to

external technology development trends and invests

in research, innovation and technology ventures that

support positive value creation for its portfolio.

Examples of relevant technologies within Equinor’s

portfolio include carbon capture and storage (CCS),

blue/green hydrogen, battery technology, solar and

wind renewable energy, low CO

₂

intensity solutions,

improvements in methane emissions and application

of renewables in oil and gas production.

Physical

climate

risks

●

Changes in physical climate parameters could impact

Equinor 's operations, resulting in disruption to

operations, increased costs, or incidents. This could

be through extreme weather events or chronic

physical impacts such as rising sea level

accompanied by increased wave heights. As

Equinor’s renewable portfolio grows, unexpected

changes in meteorological parameters, such as

average wind speed or changes in wind patterns and

cloud cover can affect energy production as well as

factors such as maintenance and equipment lifetimes.

●

Physical climate risks are taken into account through

technical and engineering functions in design,

operations, and maintenance, with consideration of

how the external physical environment may be

changing.

●

With assistance from leading expert consultants and

climate scenario models, Equinor continues to

assess vulnerability of its assets to potential climate-

related changes in the physical environment.

However, there is uncertainty regarding the

magnitude of impact and time horizon for the

occurrence of physical impacts of climate change,

which leads to uncertainty regarding the potential

impact for Equinor.

Impact on Equinor’s financial statements

₂

-cost and EU ETS carbon credits

Equinor’s oil & gas operations in Europe are part of the EU Emission Trading System (EU ETS). Equinor

buys EU ETS allowances

(quotas or carbon credits) for the emissions related to its oil & gas production and processing. Currently Equinor

receives a share of

free quotas according to the EU ETS regulation, according to which free quotas are to be phased

out by 2035.

Equinor Annual Report on Form 20-F 2023

Accounting policies - cost of CO

₂

quotas

Purchased CO

₂

quotas under the EU Emissions Trading System (EU ETS) are reflected at cost in Operating expenses

as incurred in

line with emissions. Accruals for CO

₂

quotas required to cover emissions to date are valued at market price and reflected

as a current

liability within Trade, other payables and provisions. Quotas owned, but exceeding the emissions incurred to date, are carried in the

balance sheet at cost price, classified as Other current receivables, as long as such purchased quotas

are acquired in order to cover

own emissions and may be kept to cover subsequent years’ emissions.

Obligations resulting from current year emissions and the corresponding amounts for quotas that

have been bought, paid, and

expensed, but which have not yet been surrendered to the relevant authorities, are reflected net

in the balance sheet.

Total

expensed CO

₂

cost related to emissions and purchase of CO

₂

quotas in Equinor related to activities resulting in GHG emissions

(Equinor’s share of the operating licences in addition to land-based facilities)

amounted to USD

486

million in 2023, USD

510

million

in 2022 and USD

428

million in 2021. A large portion of the cost of CO

₂

is related to the purchase of EU ETS quotas. The table below

shows, on a 100% operated basis, an analysis of number of quotas utilised and the related monetary

amounts recognised in financial

statements by Equinor’s operated licences and land-based facilities subject to the requirements

under EU ETS. Allocated free quotas

consist of actual free quotas received in ETS during the year. The closing balance for the number of quotas consists mainly of

purchased quotas for current year and remaining quotas after the settlement of current and

previous year(s), including free quotas.

The closing balance in USD consists mainly of the value of the remaining quotas after the preliminary allocation

of the current year

quotas.

Number of EU ETS quotas in

thousands

in USD million

2023

2022

2023

2022

Opening balance at 1 January

10,782

11,026

Allocated free quotas

356

3,697

Purchased quotas on the ETS market

7,822

5,985

708

509

Sold quotas on the ETS market

Returned excess free quotas

(544)

Settled quotas (offset against emissions)

(9,840)

(9,926)

(635)

(548)

Closing balance at 31 December

8,576

10,782

All numbers in the table are presented gross (100%) for Equinor operated licenses and include both

EU ETS and UK ETS quotas.

Investments in renewables and low carbon solutions

Equinor’s ambition is to build a focused, carbon efficient oil and gas portfolio complemented with

renewable and low-carbon solutions

to create long-term value while supplying reliable energy with progressively lower emissions. 2023

saw a significant increase in the

power generated from Equinor’s renewable portfolio as well as substantial

additions to the portfolio pipelines in renewables. However,

due to inflation and supply chain constraints, Equinor recognised an impairment in the

Renewables segment on the US North East

Coast offshore wind projects, see note 14 Impairments for more details.

Equinor’s investments in renewables are included as Additions to PP&E, intangibles

and equity accounted investments in the REN-

segment in note 5 Segments. See table below for details. Over the course of 2023, the

acquisition of BeGreen, a commercial-scale

offshore wind lease in California, Rio Energy in Brazil and investments related to projects in the

US and the UK contributed to the

significant increase in the book value compared to the prior year. See note 6 Acquisitions and disposals for more details.

(in USD million)

2023

2022

Offshore, REN

880

146

Onshore, REN

1,127

152

Total Additions to PP&E, intangibles and equity accounted investments - REN

2,007

298

Low carbon solutions (within MMP)

179

Total Additions to PP&E, intangibles and equity accounted investments - REN

and

LCS

2,186

334

Equinor Annual Report on Form 20-F 2023

Equinor is making significant steps to industrialise CCS and is already involved in the Northern

Lights project in Norway providing CO

₂

transport and storage solutions (in partnership with Shell and TotalEnergies). Equinor is also pursuing CCS projects in other regions

that have the necessary frame conditions for low carbon solutions. The acquisition of a

% stake in Bayou Bend, positions Equinor to

be one of the largest US carbon capture and storage projects located along the Gulf Coast in Southeast

Texas. Acquisition

investments and capital contributions in these projects amounted to USD

179

million in 2023 (USD

million in 2022).

Investments in electrification of oil and gas assets

During 2023, Equinor invested around USD

200

million in electrification (around USD

250

million in 2022). Equinor’s abatement

projects primarily include full and partly electrification of offshore assets in Norway at key fields and plants, including

the Troll,

Oseberg, Sleipner, Njord and the Hammerfest LNG plant, mainly by power from shore. Emissions abatement milestones in 2023

included the start-up of the Hywind Tampen offshore wind supplying carbon-free power to the Gullfaks A field and the electrification of

the Gina Krog field with power from shore.

Research and development activities (R&D)

Equinor is involved in several R&D projects aimed at optimizing oil and gas activities, reducing

emissions, and developing new

business opportunities in renewables and low carbon solutions. Equinor’s total R&D

activities are presented in note 9 Auditor’s

remuneration and Research and development expenditures (expensed R&D) and in note 12 Property, Plant & Equipment (capitalised

R&D).

Effects on estimation uncertainty

The effects of the initiatives to limit climate changes and the potential impact of the energy transition

are relevant to some of Equinor’s

economic assumptions and future cash flow estimations. The resulting effects and Equinor's exposure to them are

sources of

uncertainty. Estimating global energy demand and commodity prices towards 2050 is challenging due to various complex factors,

including technology change, taxation and production limits, which may change over time. This

could lead to significant changes in

accounting estimates, such as useful life (depreciation period and timing of asset retirement

obligations), value-in-use (impairment

assessments), and deferred tax assets (see note 11 Income taxes for expected utilisation period of tax losses carried forward and

recognised as deferred tax assets).

Commodity prices

Equinor’s commodity price assumptions applied in value-in-use impairment testing are based

on management’s best estimate of

future market trends. This price-set is currently not equal to the price-set in accordance with

achieving net zero emissions by 2050 as

outlined in the WEO Net Zero Emissions by 2050 scenario. Changes in how the world

acts with regards to achieving the goals in the

Paris agreement could have a negative impact on the valuation of Equinor’s

assets. Calculated possible impairments of upstream

production assets and certain intangible assets using assumed prices for two scenarios estimated

by the International Energy Agency

(IEA) are provided in the sensitivity table below. These illustrative impairment sensitivity calculations are based on a simplified model

with limitations as described in note 14 Impairments. A linear bridging was applied between current

prices and the first price point in

the price sets disclosed in both scenarios. USD

per bbl of transportation cost was added to the Brent-prices in the scenarios for

comparability with management’s current best estimate. The IEA scenarios primarily stress oil and gas prices, not reflecting

the

potential impact on Equinor’s renewable and low carbon projects or trading

and refinery margins.

Furthermore, the MMP and REN

segments represent only around

% of Equinor’s total book value of non-current segment assets and equity

accounted investments,

as disclosed in note 5 Segments.

Cost of CO

The EU ETS price has increased significantly from

EUR/tonne in 2020 to an average cost of EU ETS allowances of

EUR/tonne

in 2023 (

EUR/tonne in 2022). In its commodity price assumptions Equinor projects the price to

remain high, in the region of

EUR/tonne for the next couple of years in real 2023 terms. In 2040 the price expected to increase

to around

130

EUR/tonne (

109

EUR/tonne projected in 2022), thereafter increasing to around

150

EUR/tonne in 2050 (

135

EUR/tonne project in 2022) in real 2023

terms. As such, Equinor expects greenhouse gas emission costs to increase from current levels

and to have a wider geographical

range than today, and a global tax on CO

₂

emissions will have a negative impact on the valuation of Equinor’s

oil and gas assets.

Currently, Equinor pays CO

₂

fees in Norway, the UK, Germany, Canada and Nigeria. Norway’s Climate Action Plan for the period

2021-2030 (Meld. St 13 (2020-2021)) which assumes a gradually increased CO

₂

tax (the total of EU ETS + Norwegian CO

₂

tax) in

Norway to

2,000

NOK/ tonne (real 2020) in 2030 is used for impairment calculations of Norwegian

upstream assets.

Equinor’s responses to this risk include evaluation of carbon intensity on

both project and portfolio level in investment and divestment

decisions. Equinor currently uses an internal cost of carbon, set at

USD/tonne in 2025 and increasing to

115

USD/ tonne by 2030

and staying flat thereafter (in countries with higher carbon costs, country specific cost expectations

are used). This cost-scenario is

uncertain but serves as a placeholder for possible future CO

₂

pricing systems, making sure the assets are financially robust.

Climate-related considerations are included directly in the impairment calculations by estimating

the CO

₂

taxes in the cash flows, and

indirectly through estimated commodity prices related to supply and demand. The CO

₂

prices also have effect on the estimated

production profiles and economic cut-off of the projects. To reflect that carbon will have a cost for all Equinor’s assets, the current best

Equinor Annual Report on Form 20-F 2023

estimate of CO

prices is considered to be EU ETS for countries outside EU where carbon is not

already subject to taxation or where

Equinor has not established specific estimates.

Sensitivity table

The table below presents some relevant prices and variables compared to management’s best estimate, and an illustrative

potential

impairment effect given these scenarios. The scenario price-sets were retrieved from IEA’s report, World Energy Outlook 2023. Prices

were adjusted for inflation and presented in Real 2023. See section Profitable portfolio in Chapter

2.2. in the Integrated annual report

for more details about the scenarios:

Management's price assumptions

Net Zero Emissions (NZE) by 2050

Scenario

Announced Pledges Scenario (APS)

Brent blend, 2030

USD/bbl

Brent blend, 2040

USD/bbl

Brent blend, 2050

USD/bbl

TTF, 2030

9.1

USD/MMBtu

4.5

USD/MMBtu

6.8

USD/MMBtu

TTF, 2040

9.5

USD/MMBtu

4.4

USD/MMBtu

6.2

USD/MMBtu

TTF, 2050

9.5

USD/MMBtu

4.3

USD/MMBtu

5.6

USD/MMBtu

EU ETS

2), 3)

, 2030

123

USD/tCO

146

USD/tCO

141

USD/tCO

EU ETS

2), 3)

, 2040

150

USD/tCO

214

USD/tCO

182

USD/tCO

EU ETS

2), 3)

, 2050

176

USD/tCO

261

USD/tCO

208

USD/tCO

Illustrative potential impairment (USD)

10.0

billion

3.0

billion

Management’s future commodity price assumptions

applied when estimating value in use, see note

14 Impairments.

Scenarios: Price of CO

quotas in advanced economies with net zero pledges,

not including any other CO

taxes.

EU ETS price assumptions have been translated from EUR

to USD using Equinor’s assumptions for currency rates, EUR/USD

1,176

A scenario where all national energy and climate targets

made by governments are met on time and in full. Using

this scenario, the world is expected to

reach a 1.7ºC increase in the year 2100.

A scenario where the world moves on a potential path towards

limiting global warming to 1.5 °C relative to pre-industrial

levels.

Compared to last year’s results, the illustrative potential impairments associated with

the APS scenario have increased from less than

USD

0.5

billion to around USD

billion. Similarly, the NZE scenario has increased to around USD

billion, compared to around USD

4 billion last year. This is significantly impacted by the linear bridging between the current commodity prices and the first price

point for

the WEO scenarios, consistent with previous year’s methodology, but with lower current prices this year.

An increase in systematic climate risk may result in a higher discount rate applied for impairment

testing purposes. Please see note 14

Impairments for further information on discount rate sensitivity.

Robustness of Equinor’s portfolio, and risk of stranded assets

The transition to renewable energy, technological development, and the expected reduction in global demand for carbon-based

energy, may impact the future profitability of certain upstream oil and gas assets. Equinor uses scenario analysis to outline different

possible energy futures, some of which imply lower oil and natural gas prices and higher CO

tax. If this materialises, it can lead to a

decrease in the cash flow from oil and gas, and potentially reduce the economic lifetime

of some assets. Equinor seeks to mitigate this

risk by improving the resilience of the existing upstream portfolio, maximising the efficiency of the infrastructure on the

NCS and

optimising the high-quality international portfolio. The project portfolio is robust to low oil and gas

prices and actions are in place to

maintain cost discipline across the company. Equinor will continue to add high value barrels to the portfolio through exploration and

increased recovery, with the expectation to maintain strong oil and gas cash flow from operations until 2035. Equinor aims to maintain

significant capex flexibility in the current portfolio, with only sanctioned projects being committed representing less

than

% of the

yearly organic capex from 2025. This is expected to allow Equinor to optimise and re-prioritise non-sanctioned

projects to ensure

continued generation of high value through cycles. Equinor will continuously assess the

current and future exposure of its portfolio and

take preventative measures to manage physical climate risks.

Based on the current production profiles, approximately

% of Equinor’s proved oil and gas reserves, as defined by the SEC, are

expected to be produced in the period 2024-2030 and more than

% in the period 2024-2050. This indicates a lower risk of early

cessation of production and can provide flexibility in adapting to the changing market conditions

or a shift in global energy demand.

Equinor aims to continue to selectively explore for new resources with a focus on mature areas with existing infrastructure to

minimise emissions and maximise value. During the transition, Equinor anticipates allocating a reducing share of its gross

capex to oil and gas in the coming years and the volume of production is likely to decrease over time. Reaching Equinor’s net

% reduction ambition for operated scope 1 and 2 emissions will require a company-wide, coordinated effort to execute and

mature the abatement projects, improve energy efficiency, develop new technologies, and strengthen the resilience of the

portfolio. Equinor aims to achieve a

% reduction in net carbon intensity by 2030 and a

% reduction by 2035, including

Equinor Annual Report on Form 20-F 2023

scope 3 emissions. The combination of increased renewables and decarbonised energy, the scale up of low carbon solutions

such as CCS and optimisation of the oil and gas portfolio provides confidence that Equinor can meet its medium-term

ambitions. As such, Equinor’s ambition to become a net-zero company by 2050 have currently not resulted in the identification

of additional assets being triggered for impairment or earlier cessation.

Any future exploration may be restricted by regulations, market, and strategic considerations. Provided that

the economic assumptions

would deteriorate to such an extent that undeveloped assets controlled by Equinor should not materialise,

assets at risk are mainly

comprised of the intangible assets Oil and Gas prospects, signature bonuses and the capitalised

exploration costs, with a total

carrying value of USD

3,205

million in 2023 (USD

3,634

million in 2022). See note 13 Intangible assets for more information regarding

Equinor’s intangible assets.

Timing of Asset Retirement Obligations (ARO)

As mentioned above, there are currently no assets triggered for earlier cessation as a result

of Equinor’s ambition to become a net-

zero company by 2050. However, if the business cases of Equinor’s producing oil and gas assets should change materially, this could

affect the timing of cessation of the assets. A shorter production period will increase the carrying value of the liability. To illustrate,

performing removal five years earlier than currently scheduled would increase the liability by around USD

1.2

billion before tax (around

USD

billion in 2022). See note 23 Provisions and other liabilities for more information regarding

Equinor’s ARO, including expected

timing of cash outflows of recognised asset retirement obligations. The most significant cash outflows

are expected within the year

2043.

4 Financial risk and capital management

General information and financial risks

Equinor's business activities naturally expose Equinor to financial risks such as market risk (including

commodity price risk, currency

risk, interest rate risk and equity price risk), liquidity risk and credit risk. Equinor’s approach

to risk management includes assessing

and managing risk in activities using a holistic risk approach, by considering relevant correlations at portfolio

level between the most

important market risks and the natural hedges inherent in Equinor’s portfolio. This

approach allows Equinor to reduce the number of

risk management transactions and avoid sub-optimisation.

The corporate risk committee, which is an advisory body in Enterprise Risk Management,

is responsible for Equinor’s Enterprise Risk

Management and for proposing appropriate measures to adjust risk at the corporate level. This

includes assessing Equinor’s financial

risk policies.

Market risk

Equinor operates in the worldwide crude oil, refined products, natural gas, and electricity

markets and is exposed to market risks

including fluctuations in hydrocarbon prices, foreign currency rates, interest rates, and electricity prices that

can affect the revenues

and costs of operating, investing, and financing. These risks are managed primarily on a short-term basis with

a focus on achieving

the highest risk-adjusted returns for Equinor within the given mandate. Long-term exposures

are managed at the corporate level,

while short-term exposures are managed according to trading strategies and mandates. Mandates in

the trading organisations within

crude oil, refined products, natural gas,

and electricity are relatively restricted compared to the total market risk of Equinor.

Commodity price risk

Equinor’s most important long-term commodity risk (crude oil and natural gas)

is related to future market prices as Equinor´s risk

policy is to be exposed to both upside and downside price movements. In the longer term, also

power price risk is to a large extent

expected to contribute to Equinor’s commodity price risk portfolio.

To manage short-term commodity risk, Equinor enters into

commodity-based derivative contracts, including futures, options, over-the-counter (OTC) forward contracts, market

swaps and

contracts for differences related to crude oil, petroleum products, natural gas, power and emissions. Equinor’s

bilateral gas sales

portfolio is exposed to various price indices with a combination of gas price markers.

The term of crude oil and refined oil products derivatives are usually less than one year, and they are traded mainly on the Inter-

Continental Exchange (ICE), the CME group, the OTC Brent market, and crude and refined products swap markets.

The term of

natural gas, power, and emission derivatives is usually three years or less, and they are mainly OTC physical forwards and options,

NASDAQ OMX Oslo forwards, and futures traded on the European Energy Exchange (EEX), NYMEX

and ICE.

The table below contains the commodity price risk sensitivities of Equinor's commodity-based derivative

contracts. Equinor's assets

and liabilities resulting from commodity-based derivative contracts consist of both exchange traded and non-exchange traded

instruments, including embedded derivatives that have been bifurcated and recognised at fair value

in the Consolidated balance

sheet.

Price risk sensitivities at the end of 2023 and 2022 at

% are assumed to represent a reasonably possible change based on the

duration of the derivatives. Since none of the derivative financial instruments included in the

table below are part of hedging

relationships, any changes in the fair value would be recognised in the Consolidated statement

of income.

Equinor Annual Report on Form 20-F 2023

Commodity price sensitivity

At 31 December

2023

2022

(in USD million)

- 30%

+ 30%

- 30%

+ 30%

Crude oil and refined products net gains/(losses)

442

(442)

666

(666)

Natural gas, electricity and CO2 net gains/(losses)

(52)

(3)

140

Currency risk

Equinor’s cash flows from operating activities deriving predominantly from oil and gas

sales, operating expenses and capital

expenditures are mainly in USD, but taxes, dividends to shareholders on the Oslo Børs

and a share of our operating expenses and

capital expenditures are in NOK. Accordingly, Equinor’s currency management is primarily linked to mitigate currency risk related to

payments in NOK. This means that Equinor regularly purchases NOK, primarily spot,

but also on a forward basis using conventional

derivative instruments.

The following currency risk sensitivity for financial instruments has been calculated, by assuming

% reasonable possible change

in the most relevant foreign currency exchange rates that impact Equinor’s

financial accounts, based on balances at 31 December

2023. As of 31 December 2022, a change of

% in the most relevant foreign currency exchange rates was viewed

as a reasonable

possible change. With reference to the table below, a negative figure represents a negative equity impact / loss, while a positive figure

represents a positive equity impact / gain.

Currency risk sensitivity

At 31 December 2023

(in USD million)

NOK

EUR

GBP

Impact from an 11% strengthening of given currency vs USD on:

Shareholders equity through OCI

1,519

406

903

Shareholders equity through P&L

(413)

(418)

(92)

Impact from an 11% weakening of given currency vs USD on:

Shareholders equity through OCI

(1,519)

(406)

(903)

Shareholders equity through P&L

413

418

Currency risk sensitivity

At 31 December 2022

(in USD million)

NOK

EUR

GBP

Impact from a 12% strengthening of given currency vs

USD on:

Shareholders equity through OCI

3,552

837

750

Shareholders equity through P&L

(889)

(259)

(389)

Impact from a 12% weakening of given currency

vs USD on:

Shareholders equity through OCI

(3,552)

(837)

(750)

Shareholders equity through P&L

889

259

389

Interest rate risk

Bonds are normally issued at fixed rates in a variety of currencies (among others USD, EUR

and GBP) and some of these bonds are

converted to floating USD bonds by using interest rate and currency swaps. Equinor manages its

interest rates exposure on its bond

portfolio based on risk and reward considerations from an enterprise risk management perspective. This means

that the fixed/floating

mix on interest rate exposure may vary from time to time. For more detailed information

about Equinor’s long-term debt portfolio see

note 21 Finance debt.

The following interest rate risk sensitivity has been calculated by assuming a change of

1.3

percentage points as a reasonable

possible change in interest rates at the end of 2023. In 2022, a change of

1.2

percentage points in interest rates was viewed as a

reasonable possible change. A decrease in interest rates will have an estimated positive impact

on net financial items in the

Consolidated statement of income, while an increase in interest rates will have an estimated negative

impact on net financial items in

the Consolidated statement of income.

Interest risk sensitivity

At 31 December

2023

2022

Equinor Annual Report on Form 20-F 2023

(in USD million)

- 1.3 percentage

points

+ 1.3 percentage

points

- 1.2 percentage

points

+ 1.2 percentage

points

Positive/(negative) impact on net financial items

336

(333)

369

(366)

Equity price risk

Equinor’s captive insurance company holds listed equity securities as part of its portfolio.

In addition, Equinor holds some other listed

and non-listed equities mainly for long-term strategic purposes. By holding these assets, Equinor

is exposed to equity price risk,

defined as the risk of declining equity prices, which can result in a decline in the carrying

value of certain Equinor’s assets recognised

in the balance sheet. The equity price risk in the portfolio held by Equinor’s captive insurance

company is managed, with the aim of

maintaining a moderate risk profile, through geographical diversification and the use of broad

benchmark indexes.

The following equity price risk sensitivity has been calculated, by assuming a

% reasonable possible change in equity prices that

impact Equinor’s financial accounts, based on balances at 31 December 2023. At 31 December

2022, a change of

% in equity

prices was equally viewed as a reasonable possible change. The estimated gains and the

estimated losses following from a change in

equity prices would impact the Consolidated statement of income.

Equity price sensitivity

At 31 December

2023

2022

(in USD million)

- 35%

+ 35%

- 35%

+ 35%

Net gains/(losses)

(552)

552

(450)

450

Liquidity risk

Liquidity risk is the risk that Equinor will not be able to meet obligations of financial

liabilities when they become due. The purpose of

liquidity management is to ensure that Equinor always has sufficient funds available to cover its financial obligations.

The main cash outflows include the quarterly dividend payments and Norwegian petroleum tax

payments made six times per year.

Trading in collateralised commodities and financial contracts also exposes Equinor to liquidity risk related to potential collateral calls

from counterparties.

If the cash flow forecasts indicate that the liquid assets will fall below target levels,

new long-term funding will be considered. Equinor

raises debt in all major capital markets (USA, Europe and Asia) for long-term funding purposes.

The policy is to have a maturity profile

with repayments not exceeding

% of capital employed in any year for the nearest five years. Equinor’s

non-current financial liabilities

have a weighted average maturity of approximately nine years. For more information about Equinor’s

non-current financial liabilities,

see note 21 Finance debt.

Short-term funding needs will normally be covered by the USD

5.0

billion US Commercial paper programme (CP) which is backed by

a revolving credit facility of USD

6.0

billion, supported by

core banks,

maturing in 2026

. The facility supports secure access to

funding, supported by the best available short-term rating. As at 31 December 2023 the facility

has not been drawn upon.

The table below shows a maturity profile, based on undiscounted contractual cash flows, for Equinor’s

financial liabilities.

At 31 December

2023

2022

(in USD million)

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Non-derivative financial

liabilities

Lease

liabilities

Derivative

financial

liabilities

Year 1

20,209

1,369

857

20,172

1,325

1,065

Year 2 and 3

6,035

1,434

636

6,292

1,421

752

Year 4 and 5

5,601

496

404

5,785

504

486

Year 6 to 10

6,846

405

1,016

8,749

465

1,202

After 10 years

10,751

340

11,204

120

706

Total specified

49,442

3,776

3,253

52,202

3,835

4,211

Credit risk

Equinor Annual Report on Form 20-F 2023

Credit risk is the risk that Equinor’s customers or counterparties will cause Equinor financial

loss by failing to honour their obligations.

Credit risk arises from credit exposures with customer accounts receivables as well as from financial investments,

derivative financial

instruments and deposits with financial institutions. Equinor uses risk mitigation tools to reduce

or control credit risk both on a

counterparty and portfolio level. The main tools include bank and parental guarantees, prepayments,

and cash collateral.

Prior to entering into transactions with new counterparties, Equinor’s credit policy requires all counterparties where Equinor has

material credit exposure to be formally identified and assigned internal credit ratings. The internal credit ratings reflect Equinor’s

assessment of the counterparties' credit risk and are based on a quantitative and qualitative analysis of recent financial statements

and other relevant business information. All counterparties are re-assessed regularly.

Equinor has

pre-defined limits

for the

absolute credit

risk level

allowed at

any given

time on

Equinor’s portfolio

as well

as maximum

credit

exposures

for

individual counterparties.

Equinor

monitors

the

portfolio

regular

basis

and

individual,

material

exposures

against limits on a daily basis. Equinor’s total

credit exposure is geographically diversified among

a number of counterparties within the

oil and energy sector, as well as larger oil and gas consumers

and financial counterparties. The majority of Equinor’s

credit exposure is

with investment- grade counterparties.

The following table contains the carrying amount of Equinor’s financial receivables

and derivative financial instruments split by

Equinor’s assessment of the counterparty's credit risk. Trade and other receivables include

% overdue receivables of more than 30

days. A provision has been recognised for expected credit losses of trade and other receivables

using the expected credit loss model.

Only non-exchange traded instruments are included in derivative financial instruments.

(in USD million)

Non-current financial

receivables

Trade and other

receivables

Non-current

derivative financial

instruments

Current derivative

financial instruments

At 31 December 2023

Investment grade, rated A or above

193

5,857

305

565

Other investment grade

5,132

565

Non-investment grade or not rated

140

5,204

247

248

Total financial assets

341

16,193

559

1,378

At 31 December 2022

Investment grade, rated A or above

1,633

6,125

390

1,715

Other investment grade

8,725

1,393

Non-investment grade or not rated

6,761

259

931

Total financial assets

1,659

21,611

690

4,039

For more information about Trade and other receivables, see note 18 Trade and other receivables.

The table below presents the amounts offset under the terms of various offsetting agreements for financial assets and

liabilities. These agreements are mainly entered into to manage the credit risks associated with over-the-counter commodity

trading as well as regular commodity purchases and sales and enable Equinor and their counterparties to set off financial

liabilities against financial assets in the ordinary course of business as well as in case of default. In addition, exchange-traded

commodity derivatives are offset towards collateral receipts/payments as a result of day-to-day cash settlements based on

change in fair value of open derivative positions. Amounts not qualifying for offsetting consists of collateral receipts or

payments which usually is settled on a gross basis. Normally these amounts will offset in a potential default situation. There

exist no restrictions on collaterals received.

Equinor Annual Report on Form 20-F 2023

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2023

Financial assets

Trade receivables

17,139

3,133

14,006

Collateral receivables

8,713

6,526

2,186

Derivative financial instruments

12,767

10,829

1,937

677

1,260

Total financial assets

38,619

20,488

18,129

2,863

15,266

Financial liabilities

Trade payables

14,184

3,133

11,051

Collateral liabilities

7,791

7,333

458

Derivative financial instruments

13,437

10,023

3,414

2,405

1,009

Total financial liabilities

35,412

20,488

14,923

2,863

12,060

(in USD million)

Gross amounts of

recognised

financial assets/

liabilities

Gross amounts

offset in the

balance sheet

Net amounts

presented in the

balance sheet

Amounts of

remaining rights

to set-off not

qualifying for

offsetting

Net amount

At 31 December 2022

Financial assets

Trade receivables

25,607

7,464

18,143

Collateral receivables

16,923

13,455

3,468

Derivative financial instruments

28,535

23,806

4,730

1,708

3,022

Total financial assets

71,065

44,725

26,341

5,176

21,164

Financial liabilities

Trade payables

19,913

7,464

12,449

Collateral liabilities

13,936

12,365

1,571

Derivative financial instruments

31,377

24,895

6,482

3,605

2,877

Total financial liabilities

65,226

44,725

20,502

5,176

15,326

Capital management

The main objectives of Equinor's capital management policy are to maintain a strong overall financial

position and to ensure sufficient

financial flexibility. Equinor’s primary focus is on maintaining its credit rating in the A category on a stand alone basis (excluding uplifts

for Norwegian Government ownership). Equinor’s current long-term ratings are AA- with

a stable outlook (including one notch uplift)

and Aa2 with a stable outlook (including two notch uplift) from S&P

and Moody’s, respectively. In order to monitor financial robustness,

a key ratio utilised by Equinor is the non-GAAP metric of “Net interest-bearing debt adjusted

(ND2) to Capital employed adjusted

(CE2)”.

At 31 December

(in USD million)

2023

2022

Net interest-bearing debt adjusted, including lease

liabilities (ND1)

(5,040)

(6,750)

Net interest-bearing debt adjusted (ND2)

(8,610)

(10,417)

Equinor Annual Report on Form 20-F 2023

Capital employed adjusted, including lease liabilities

(CE1)

43,460

47,239

Capital employed adjusted (CE2)

39,890

43,571

Net debt to capital employed adjusted, including

lease liabilities (ND1/CE1)

(11.6%)

(14.3%)

Net debt to capital employed adjusted (ND2/CE2)

(21.6%)

(23.9%)

ND1 is defined as Equinor's interest-bearing financial liabilities less cash and cash equivalents and current

financial investments,

adjusted for collateral deposits and balances held by Equinor's captive insurance company (amounting to USD

2,030

million and USD

6,538

million for 2023 and 2022, respectively). CE1 is defined as Equinor's total equity (including

non-controlling interests) and ND1.

ND2 is defined as ND1 adjusted for lease liabilities (amounting to USD

3,570

million and USD

3,668

million for 2023 and 2022,

respectively). CE2 is defined as Equinor's total equity (including non-controlling interests) and ND2.

5 Segments

Accounting policies

Equinor’s operations are managed through operating segments identified on the

basis of those components of Equinor that are

regularly reviewed by the chief operating decision maker, Equinor's Corporate Executive Officer (CEO). The reportable segments

Exploration & Production Norway (E&P Norway), Exploration & Production International (E&P

International), Exploration & Production

USA (E&P USA), Marketing, Midstream & Processing (MMP) and Renewables

(REN) correspond to the operating segments. The

operating segments Projects, Drilling & Procurement (PDP), Technology, Digital & Innovation (TDI) and Corporate staff and functions

are aggregated into the reportable segment Other based on materiality. The majority of the costs in PDP and TDI is allocated to the

three Exploration & Production segments, MMP and REN.

The accounting policies of the reporting segments equal those described in these Consolidated

financial statements, except for the

line-item Additions to PP&E, intangibles and Equity accounted investments in which movements

related to changes in asset

retirement obligations are excluded as well as provisions for onerous contracts which reflect only

obligations towards group external

parties. The measurement basis of segment profit is net operating income/(loss). Deferred tax assets,

pension assets, non-current

financial assets, total current assets and total liabilities are not allocated to the segments. Transactions between the segments,

mainly

from the sale of crude oil, gas,

and related products, are performed at defined internal prices which have been derived from

market

prices. The transactions are eliminated upon consolidation.

The Exploration & Production operating segments are responsible for the discovery and appraisal

of new resources, commercial

development and safe and efficient operation of the oil and gas portfolios within their respective geographical

areas: E&P Norway on

the Norwegian continental shelf, E&P USA in USA and E&P International worldwide

outside of E&P Norway and E&P USA.

PDP is responsible for global project development, well deliveries, and sourcing across Equinor.

TDI encompasses research, technology development, specialist advisory services, digitalisation, IT, improvement, innovation, and

ventures and future business.

MMP is responsible for the marketing, trading, processing and transportation of crude oil and condensate,

natural gas, NGL and

refined products, and includes refinery, terminals, and processing plant operation. MMP is also managing power and emissions trading

and the development of transportation solutions for natural gas, liquids, and crude oil, including pipelines,

shipping, trucking and rail. In

addition, MMP is in charge of low carbon solutions in Equinor.

REN is developing, exploring, investing in, and operating areas within renewable energy such

as offshore wind, green hydrogen,

storage solutions, and solar power.

Segment information for the years ended 31 December 2023, 2022, and 2021 are presented below. For revenues per geographical

area, please see note 7 Total revenues and other income. For further information on the following items affecting the segments,

please refer to the related notes: note 6 Acquisitions and disposals, note 14 Impairments, and note 26 Other commitments,

contingent

liabilities, and contingent assets.

Equinor Annual Report on Form 20-F 2023

2023

E&P

Norway

E&P

International

E&P USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

230

993

277

105,242

106,848

Revenues and other income inter-segment

37,999

6,009

4,009

633

(48,695)

Net income/(loss) from equity accounted

investments

(33)

(8)

(1)

Other income

111

142

327

Total revenues and other income

38,340

7,032

4,319

105,908

253

(48,695)

107,174

Purchases [net of inventory variation]

(70)

(95,769)

(1)

47,665

(48,175)

Operating, selling, general and

administrative expenses

(3,759)

(2,176)

(1,178)

(4,916)

(462)

(201)

893

(11,800)

Depreciation and amortisation

(4,429)

(2,123)

(1,779)

(897)

(12)

(133)

(9,373)

Net impairment (losses)/reversals

(588)

(310)

290

(343)

(300)

(10)

(1,260)

Exploration expenses

(476)

(20)

(299)

(795)

Total operating expenses

(9,253)

(4,700)

(2,966)

(101,925)

(774)

(345)

48,558

(71,404)

Net operating income/(loss)

29,087

2,332

1,353

3,984

(757)

(92)

(137)

35,770

Additions to PP&E, intangibles and equity

accounted investments

5,939

4,376

1,206

844

2,007

128

14,500

Balance sheet information

Equity accounted investments

783

1,665

2,508

Non-current segment assets

28,915

17,977

11,049

3,997

1,575

1,018

64,530

Non-current assets not allocated to

segments

14,487

Total non-current assets

81,525

Assets classified as held for sale

1,064

Equinor Annual Report on Form 20-F 2023

2022

E&P

Norway

E&P

International

E&P

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

304

1,099

305

147,164

115

149,004

Revenues and other income inter-segment

74,631

6,124

5,217

527

(86,554)

Net income/(loss) from equity accounted

investments

172

406

(16)

620

Other income

994

111

1,182

Total revenues and other income

75,930

7,431

5,523

148,105

185

187

(86,554)

150,806

Purchases [net of inventory variation]

(116)

(139,916)

86,227

(53,806)

Operating, selling, general and

administrative expenses

(3,782)

(1,698)

(938)

(4,591)

(265)

(223)

904

(10,593)

Depreciation and amortisation

(4,986)

(1,445)

(1,422)

(881)

(4)

(142)

(8,878)

Net impairment (losses)/reversals

819

(286)

1,060

895

2,487

Exploration expenses

(366)

(638)

(201)

(1,205)

Total operating expenses

(8,315)

(4,183)

(1,501)

(144,493)

(269)

(365)

87,130

(71,995)

Net operating income/(loss)

67,614

3,248

4,022

3,612

(84)

(178)

577

78,811

Additions to PP&E, intangibles and equity

accounted investments

4,922

2,623

764

1,212

298

176

9,994

Balance sheet information

Equity accounted investments

550

688

1,452

2,758

Non-current segment assets

28,510

15,868

11,311

4,619

316

1,031

61,656

Non-current assets not allocated to

segments

15,437

Total non-current assets

79,851

Assets classified as held for sale

1,018

Equinor Annual Report on Form 20-F 2023

2021

E&P

Norway

E&P

International

E&P

USA

MMP

REN

Other

Eliminations

Total group

(in USD million)

Revenues third party

261

1,115

377

86,883

88,744

Revenues and other income inter-segment

38,972

4,230

3,771

321

(47,335)

Net income/(loss) from equity accounted

investments

214

259

Other income

154

168

1,386

208

1,921

Total revenues and other income

39,386

5,565

4,149

87,393

1,411

355

(47,335)

90,924

Purchases [net of inventory variation]

(58)

(80,873)

(1)

45,772

(35,160)

Operating, selling, general and

administrative expenses

(3,653)

(1,405)

(1,074)

(3,753)

(163)

(432)

1,102

(9,378)

Depreciation and amortisation

(6,002)

(1,734)

(1,665)

(869)

(3)

(158)

(10,432)

Net impairment (losses)/reversals

1,102

(1,587)

(69)

(735)

(1,287)

Exploration expenses

(363)

(451)

(190)

(1,004)

Total operating expenses

(8,915)

(5,237)

(2,998)

(86,230)

(166)

(590)

46,873

(57,261)

Net operating income/(loss)

30,471

329

1,150

1,163

1,245

(234)

(461)

33,663

Additions to PP&E, intangibles and equity

accounted investments

4,943

1,834

690

517

457

8,506

Balance sheet information

Equity accounted investments

1,417

113

1,108

2,686

Non-current segment assets

36,502

15,422

11,406

4,006

157

1,032

68,527

Non-current assets not allocated to

segments

13,406

Total non-current assets

84,618

Assets classified as held for sale

676

Equinor Annual Report on Form 20-F 2023

Non-current assets by country

At 31 December

(in USD million)

2023

2022

Norway

32,977

33,242

USA

12,587

12,343

Brazil

10,871

9,400

5,535

3,688

Canada

1,157

1,171

Angola

1,103

895

Denmark

973

497

Argentina

648

615

Algeria

474

622

Poland

447

270

Other

265

1,672

Total non-current assets

67,038

64,414

Excluding deferred tax assets, pension assets and

non-current financial assets.

Non-current assets are attributed to country of

operations.

Equinor Annual Report on Form 20-F 2023

6 Acquisitions and disposals

Accounting policies

Business combinations and divestments

Business combinations, except for transactions between entities under common control, are accounted for

using the acquisition

method when control is transferred to the group. The purchase price includes total consideration

paid to acquire the entity’s assets

and liabilities, as well as contingent consideration at fair value. The acquired identifiable

assets, liabilities and contingent liabilities are

measured at fair value at the date of the acquisition. Acquisition costs incurred are expensed under

Selling, general and administrative

expenses. Changes in the fair value of contingent consideration resulting from events after the

acquisition date are recognised in the

Consolidated statement of income under Other income.

Equinor recognises a gain or loss on disposal of a subsidiary when control is lost. Any interest retained

in the former subsidiary is

measured at fair value at the time of loss of control. However, when partially divesting subsidiaries that do not constitute a business,

and where the retained investment in the former subsidiary is an associate or a jointly

controlled investment, Equinor recognises the

gain or loss only on the divested part within Other income or Operating expenses,

respectively. The interest retained in the former

subsidiary is initially not remeasured, and subsequently accounted for using the equity method.

On the NCS, all disposals of assets are performed including the tax base (after-tax). Any gain

includes the release of tax liabilities

previously recognised related to the assets in question and is recognised in full in Other income in

the Consolidated statement of

income.

Assets classified as held for sale

Non-current assets are classified separately as held for sale in the Consolidated balance sheet

when a sale is highly probable. This

condition is met when an asset is available for immediate sale in its present condition,

Equinor’s management is committed to the

sale, and the sale is expected to be completed within one year from the date

of classification. In Equinor, these requirements are

normally met when management has approved a negotiated letter of intent with the

counterparties (a ‘DGC’). Liabilities directly

associated with the assets classified as held for sale and expected to be included as part

of the sales transaction, are also classified

separately.

Accounting judgement regarding acquisitions

Determining whether an acquisition meets the definition of a business combination requires judgement to

be applied on a case-by-

case basis. Acquisitions are assessed to establish whether the transaction represents a business

combination or an asset purchase,

and the conclusion may materially affect the financial statements both in the transaction period and subsequent

periods. Similar

assessments are performed upon the acquisition of an interest in a joint operation. Depending

on the specific facts, acquisitions of oil

and gas exploration and evaluation licences for which a development decision has not yet

been made have largely been concluded to

represent asset purchases, while purchases of producing assets have largely been concluded to

represent business acquisitions.

Accounting judgement regarding partial divestments

The policy regarding partial divestments of subsidiaries is based on careful consideration of the

requirements and scope of IFRS 10

Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The assessment requires judgement to

be applied on a case-by-case basis, considering the substance of the transactions. In evaluating

the IFRS Accounting Standards’

requirements, Equinor acknowledges pending considerations related to several relevant and similar issues

which have been

postponed by the IASB in anticipation of concurrent consideration at a later date. Where assets

are transferred into separate legal

entities concurrently with a portion of the entities’ shares being sold to a third party, thereby resulting in Equinor’s loss of control

those asset-owning subsidiaries, and where investments in joint ventures are established simultaneously, Equinor has concluded to

recognise the gain only on the divested portion.

----------------------------------------------------------------------------------------------------------------------------------------

2023

Acquisitions

Acquisition of Rio Energy

On 3 November 2023,

Equinor closed a transaction with

Denham Capital to acquire

100

% of the shares

in Horus Investimentos S.A.,

the

parent

company

Rio

Energy

Participações

S.A.,

leading

onshore

renewables

company

Brazil.

The

cash

consideration

amounted to USD

million in addition to USD

268

million in capital contribution to

settle Rio Energy’s external financing. The

acquired

portfolio includes a producing onshore wind

farm in the north-eastern state of Bahia,

a pre-construction solar photovoltaic (PV) portfolio

and a pipeline of

1.2 GW of onshore

wind and solar projects.

This transaction resulted in an

increase in Equinor’s property,

plant and

equipment

USD

350

million.

The

transaction has

been

accounted

for

business

combination

within

the

REN

segment.

The

purchase price and the purchase price allocation are preliminary.

Equinor Annual Report on Form 20-F 2023

Acquisition of Suncor Energy UK Limited

On 30 June 2023, Equinor closed

a transaction with Suncor Energy UK

Holdings Ltd to acquire

100

% of the shares in Suncor

Energy

UK Limited for a total

consideration of USD

847

million after customary adjustments

for working capital. The

transaction includes a non-

operated interest in the producing Buzzard oil field

(

29.89

%) and an additional interest in the operated

Rosebank development (

%).

The transaction has

been accounted for

within the E&P

International segment as

a business combination,

resulting in an

increase in

Equinor’s

property,

plant

and

equipment

USD

1,490

million

and

deferred

tax

liabilities

USD

672

million.

The

purchase

price

allocation remains preliminary.

Acquisition of BeGreen

On 26 January 2023, Equinor closed a

transaction with the Bregentved Group and members of

the executive board of BeGreen Solar

Aps to acquire

100

% of the shares

in the Danish solar

developer BeGreen Solar Aps.

The cash consideration amounted

to USD

252

million (EUR

235

million), in addition to a consideration

contingent on the successful delivery of

future solar projects above an agreed

megawatt

threshold.

The

transaction

has

been

accounted

for

within

the

REN

segment

business

combination,

resulting

increase of Equinor’s intangible assets of USD

423

million.

Disposals

Equinor Energy Ireland Limited

On 31 March 2023, Equinor closed the transaction with Vermilion Energy Inc (Vermillion) to sell Equinor’s non-operated equity

position

in the

Corrib gas

project in

Ireland, covering

100

% of

the shares

in Equinor

Energy Ireland

Limited (EEIL).

Prior to

closing, Equinor

received an

extraordinary dividend

of USD

371

million from

EEIL. Total

consideration amounted

to USD

362

million, including

cash

settlement

contingent

consideration.

loss

USD

258

million

has

been

recognised

within

the

E&P

International

segment

and

presented in the line item Operating expenses in the Consolidated statement of income.

Held for sale

Divestment of interest in Azerbaijan

On 22 December 2023, Equinor entered into an agreement with the

State Oil Company of the Republic of Azerbaijan (SOCAR) to sell

its interest in its Azerbaijan assets. The assets comprise a

7.27

% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in

the

Azerbaijan

sector

the

Caspian

Sea,

8.71

interest

the

Baku-Tbilisi-Ceyhan

(BTC)

pipeline

and

the

Karabagh

oil

field. Closing is expected during 2024 subject to regulatory and

contractual approvals. The assets have been classified as

held for sale

resulting in a

USD

310

million impairment within the

E&P International segment, presented

in the line

item Depreciation, amortisation

and net impairments in the Consolidated statement of income.

2022

Acquisitions

Acquisition of Triton Power

On 1 September 2022, Equinor and SSE Thermal

Generation Holdings Limited (SSE Thermal) closed a transaction to acquire

the UK

power company

Triton Power

Holdings Ltd

(Triton Power)

from Triton

Power Partners

LP owned

by Energy

Capital Partners

(ECP).

Equinor’s share

of the

consideration was

USD

141

million (GBP

120

million), after

adjustments that

mainly related

to net

debt and

working capital. The

key plant included

in the purchase

of Triton

Power is the

Saltend Power Station

with an installed

capacity of 1.2

GW. Equinor and SSE Thermal own

% each of Triton Power, and

Equinor is accounting for the investment under the equity method

as a joint venture in the MMP segment.

Acquisition of Statfjord

On 31 May 2022, Equinor

closed a transaction to

acquire all of Spirit Energy’s

ownership interests in production

licences in the Statfjord

area which covers the

Norwegian and UK Continental Shelves ranging

from

11.56

% to

48.78

%. All licences are operated by

Equinor.

The cash consideration received was

USD

168

million. The assets and liabilities

acquired have been reflected in

accordance with the

principles in IFRS

3 Business Combinations.

The transaction is

reflected in the

E&P Norway and

E&P International segments.

In the

segment E&P Norway, the

acquisition resulted in an increase of USD

million in property, plant and

equipment, an increase of USD

390

million in asset

retirement obligation, a

reduction of deferred

tax liability

of USD

298

million and an

increase in taxes

payable of

USD

million. In

the segment

E&P International,

the acquisition

resulted in

increase of

USD

million in

property,

plant

and

equipment, an increase of USD

241

million in asset retirement obligation and an increase of deferred tax asset of USD

million.

Disposals

Ekofisk and Martin Linge on the Norwegian Continental Shelf

On 30

September 2022,

Equinor closed

a transaction

with Sval

Energi AS

to divest

Equinor’s entire

ownership share

in the

Greater

Ekofisk

Area including

its share

in Norpipe

Oil AS,

and a

% ownership

share in

Martin Linge.

The cash

consideration at

closing

amounted to

USD

293

million. Equinor

retained a

% ownership

share in

Martin Linge

and continues

as operator

of the

field. The

Equinor Annual Report on Form 20-F 2023

100

disposal resulted in a decrease

in property, plant and equipment of USD

1,493

million, a decrease in

asset retirement obligation of

USD

376

million, a decrease in deferred tax liability of USD

597

million and a decrease in taxes payable of USD

686

million. A post-tax gain

of USD

655

million is presented in the line item Other income in the Consolidated statement

of income in the E&P Norway segment.

Exit Russia

Following Russia’s invasion of Ukraine

in February 2022, Equinor

announced that it had

decided to stop new

investments in Russia and

start the process of exiting

Equinor’s joint arrangements.

Based on this decision,

Equinor evaluated its assets

in Russia and recognised

net impairments of

USD

1,083

million in the

first quarter,

of which USD

251

million was related

to property,

plant and equipment

and

intangible assets and USD

832

million was related to investments accounted for using the equity method.

The impairments were net of

contingent

consideration

from

the

time

acquiring

the

assets.

The

impairments

were

recognised

the

line

items

Depreciation,

amortisation and net impairment losses and Exploration expenses in the Consolidated statement of income based on the nature of the

impaired assets and

reflected in the

E&P International

segment. During the

second quarter, Equinor

transferred its participating

interests

in four Russian

entities to Rosneft

and was released

from all future

commitments and obligations

with no material

impact on the

financial

statements. The ownership interests in Kharyaga were transferred to the operator.

Equinor has stopped trading in Russian oil. This means

that Equinor will not enter into any new trades or

engage in new transport of oil

and oil products from Russia. Equinor has

assessed the accounting impact of certain commitments

arising from such contracts entered

into prior to the invasion and deem the impact to be immaterial.

10% of Dogger Bank C

On 10 February 2022, Equinor closed the transaction with Eni

to sell a

% equity interest in the Dogger Bank C project

in the UK for a

total consideration of

USD

million (GBP

million), resulting in a

gain of USD

million (GBP

million). After closing,

Equinor’s

ownership share is

%. Equinor continues to equity account for the remaining investment as a joint venture.

The gain is presented in

the line item Other income in the Consolidated statement of income in the REN segment.

Equinor Annual Report on Form 20-F 2023

101

7 Total

revenues and other income

Accounting policies

Revenue recognition

Equinor presents Revenue from contracts with customers and Other revenue as a single caption,

Revenues, in the Consolidated

statement of income.

Revenue from contracts with customers

Revenue from the sale of crude oil, natural gas, petroleum products, power and other merchandise

is recognised when a customer

obtains control of those products, which for tangible products normally is when title passes

at point of delivery, based on the

contractual terms of the agreements. Each such sale normally represents a single performance obligation.

In the case of natural gas

as well as power, which is delivered on a continuous basis through pipelines and grid, sales are completed over time in line with the

delivery of the actual physical quantities.

Sales and purchases of physical commodities are presented on a gross basis as Revenues from contracts

with customers and

Purchases [net of inventory variation] respectively in the Consolidated statement of income. When

the contracts are deemed financial

instruments or part of Equinor’s trading activities, they are settled and presented

on a net basis as Other revenue. Reference is made

to note 28 Financial instruments and fair value measurement for a description of accounting policies

regarding derivatives. Sales of

Equinor’s own produced oil and gas volumes are always reflected gross as Revenue

from contracts with customers.

Revenues from the production of oil and gas in which Equinor shares an interest with

other companies are recognised on the basis of

volumes lifted and sold to customers during the period (the sales method). Where Equinor

has lifted and sold more than the

ownership interest, an accrual is recognised for the cost of the overlift. Where Equinor has lifted

and sold less than the ownership

interest, costs are deferred for the underlift.

Certain long-term LNG and natural gas sales contracts include clauses which entail price reviews

at regular intervals at the discretion

of either party. Where updated prices have not yet been agreed upon for volumes already delivered, it is necessary to estimate the

amount of variable consideration Equinor expects to be entitled to for these volumes. In the

frequently volatile markets, there is a

degree of estimation uncertainty and reasoned judgement in establishing the expected variable

consideration.

Other revenue

Items representing a form of revenue, or which are related to revenue from contracts with customers,

are presented as other revenue

if they do not qualify as revenue from contracts with customers. These other revenue

items include taxes paid in-kind under certain

production sharing agreements (PSAs) and the net impact of commodity trading and commodity-based derivative

instruments related

to sales contracts or revenue-related risk management.

Transactions with the Norwegian State

Equinor markets and sells the Norwegian State's share of oil and gas production from the

Norwegian continental shelf (NCS). The

Norwegian State's participation in petroleum activities is organised through the Norwegian State’s Direct Financial

Interests (SDFI). All

purchases and sales of the SDFI's oil and natural gas liquids production are classified as purchases

[net of inventory variation] and

revenues from contracts with customers, respectively.

Equinor sells, in its own name, but for the SDFI’s account and risk, the SDFI’s production of natural gas including Liquefied Natural

Gas (LNG). These gas sales and related expenditures refunded by the SDFI are presented net in the

Consolidated financial

statements. Natural gas sales made in the name of Equinor’s subsidiaries

are also presented net of the SDFI’s share in the

Consolidated statement of income, but this activity is reflected gross in the Consolidated balance sheet.

Accounting judgement related to transactions with the Norwegian State

Whether to account for the transactions gross or net involves the use of significant

accounting judgement. In making the judgement,

Equinor has considered whether it controls the State-originated crude oil volumes prior to onwards

sales to third party customers.

Equinor directs the use of the volumes, and although certain benefits from the sales subsequently

flow to the SDFI, Equinor

purchases the crude oil volumes from the SDFI and obtains substantially all the remaining benefits. On

that basis, Equinor has

concluded that it acts as principal in these sales.

Regarding gas sales, Equinor concluded that ownership of the gas had not been transferred from

the SDFI to Equinor. Although

Equinor has been granted the ability to direct the use of the volumes, all the benefits from the

sales of these volumes flow to the SDFI.

On that basis, Equinor is not considered the principal in the sale of the SDFI’s natural gas volumes.

Reference is made to note 27 Related parties for detailed financial information regarding transactions

performed between Equinor and

SDFI.

----------------------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023

102

Revenues from contracts with customers by geographical areas

Equinor has business operations in around 30 countries.

When attributing the line-item Revenues from contracts with customers for 2023

to the country of the legal entity executing the sale, Norway constitutes

% and USA constitutes

%. For 2022 the revenues to

Norway and USA constituted

% and

% respectively, and for 2021

% and

% respectively.

Revenues from contracts with

customers are mainly reflecting such revenues from the reporting segment MMP.

Revenues from contracts with customers and

other revenues

(in USD million)

Note

2023

2022

2021

Crude oil

56,861

58,524

38,307

Natural gas

26,386

65,232

28,050

- European gas

23,174

58,239

24,900

- North American gas

1,111

2,884

1,783

- Other incl LNG

2,102

4,109

1,368

Refined products

10,083

11,093

11,473

Natural gas liquids

8,345

9,240

8,490

Transportation

1,425

1,470

921

Other sales

3,032

4,702

1,006

Total revenues from contracts with customers

106,132

150,262

88,247

Taxes paid in-kind

342

412

345

Physically settled commodity derivatives

1,331

(2,534)

(1,075)

Gain/(loss) on commodity derivatives

(1,041)

739

951

Change in fair value of trading inventory

(334)

(194)

Other revenues

418

319

276

Total other revenues

716

(1,258)

497

Revenues

106,848

149,004

88,744

Net income/(loss) from equity accounted investments

(1)

620

259

Other income

327

1,182

1,921

Total revenues and other income

107,174

150,806

90,924

Equinor Annual Report on Form 20-F 2023

103

8 Salaries and personnel expenses

(in USD million, except average number of employees)

2023

2022

2021

Salaries

2,876

2,875

2,962

Pension costs

441

458

488

Payroll tax

511

433

414

Other compensations and social costs

375

324

288

Total payroll expenses

4,203

4,090

4,152

Average number of employees

22,600

21,500

21,400

Salaries include bonuses and expatriate costs in addition to base pay.

See note 22 Pensions.

Part time employees amount to

% for 2023 and

% for 2022 and 2021.

Total payroll expenses are accumulated in cost-pools and partially charged to partners of Equinor operated licences on an hours

incurred basis.

Compensation to the board of directors (BoD) and the corporate executive committee

(CEC)

(in USD million)

2023

2022

2021

Current employee benefits

10.7

12.9

12.2

Post-employment benefits

0.3

0.4

Other non-current benefits

0.0

Share-based payment benefits

0.3

0.2

0.1

Total benefits

11.3

13.5

12.7

1) All figures in the table are presented on accrual basis.

At 31 December 2023, 2022, and 2021 there are

loans to the members of the BoD or the CEC.

Share-based compensation

Equinor's share saving plan provides employees with the opportunity to purchase Equinor shares through

monthly salary deductions

and a contribution by Equinor. If the shares are kept for two full calendar years of continued employment following the year of

purchase, the employees will be allocated one bonus share for each share they have purchased.

Estimated compensation expense including the contribution by Equinor for purchased shares, amounts

vested for bonus shares

granted and related social security tax was USD

million, USD

million, and USD

million related to the 2023, 2022 and 2021

programmes, respectively. For the 2024 programme (granted in 2023), the estimated compensation expense is USD

million. At 31

December 2023 the amount of compensation cost yet to be expensed throughout the vesting period is

USD

176

million.

See note 20 Shareholders’ equity,

capital distribution and earnings per share for more information about share-based compensation.

Equinor Annual Report on Form 20-F 2023

104

9 Auditor’s remuneration and Research and development expenditures

Auditor's remuneration

Full year

(in USD million, excluding VAT)

2023

2022

2021

Audit fee

14.9

11.4

14.4

Audit related fee

1.2

1.8

1.1

Tax fee

Other service fee

Total remuneration

16.1

13.2

15.5

In addition to the figures in the table above, the audit fees and audit related fees related to Equinor

operated licences amount to USD

0.5

million, USD

0.6

million and USD

0.5

million for 2023, 2022 and 2021, respectively.

Research and development expenditures (R&D)

Equinor has R&D activities within exploration, subsurface, drilling and well, facilities, low carbon

and renewables. R&D activities

contribute to maximising and developing long-term value from Equinor’s assets. R&D

expenditures are partially financed by partners

of Equinor operated licences.

R&D expenditures including amounts charged to partners were USD

311

million, USD

308

million and USD

291

million in 2023, 2022

and 2021, respectively. Equinor's share of the expenditures has been recognised within Total operating expenses in the Consolidated

statement of income.

Equinor Annual Report on Form 20-F 2023

105

10 Financial items

Full year

(in USD million)

2023

2022

2021

Foreign currency exchange gains/(losses) derivative

financial instruments

(1,476)

797

870

Other foreign currency exchange gains/(losses)

2,328

1,291

(823)

Net foreign currency exchange gains/(losses)

852

2,088

Dividends received

218

Interest income financial investments, including

cash and cash equivalents

1,468

398

Interest income non-current financial receivables

Interest income other current financial assets and other

financial items

732

701

Interest income and other financial income

2,449

1,222

151

Gains/(losses) financial investments

123

(394)

(348)

Gains/(losses) other derivative financial instruments

351

(1,745)

(708)

Interest expense bonds and bank loans and net

interest on related derivatives

(1,263)

(1,029)

(896)

Interest expense lease liabilities

(132)

(90)

(93)

Capitalised borrowing costs

468

382

334

Accretion expense asset retirement obligations

(538)

(449)

(453)

Interest expense current financial liabilities and

other financial expense

(195)

(192)

(114)

Interest expenses and other financial expenses

(1,660)

(1,379)

(1,223)

Net financial items

2,114

(207)

(2,080)

Equinor's main financial items relate to assets and liabilities in the fair value through profit

or loss and the amortised cost categories.

For more information about financial instruments by category see note 28 Financial instruments

and fair value measurement.

Foreign currency exchange gains/(losses) derivative financial instruments include fair value changes

of currency derivatives related to

liquidity and currency risk. Other foreign currency exchange gains/(losses) includes a fair value gain from

derivatives related to non-

current debt of USD

315

million in 2023, and a loss of USD

691

million and USD

702

million in 2022 and 2021 respectively.

Interest income financial investments, including cash and cash equivalents includes interest income related to balances

at amortised

cost of USD

1,410

million, USD

364

million, and USD

million for 2023, 2022 and 2021, respectively.

Gains/(losses) other derivative financial instruments primarily include fair value changes from interest rate

related derivatives, with a

gain of USD

332

million in 2023 and a loss of USD

1,760

million and USD

724

million in 2022 and 2021 respectively.

Interest expense bonds and bank loans and net interest on related derivatives includes

interest expenses of USD

857

million, USD

918

million, and USD

990

million for 2023, 2022 and 2021, respectively, on financial liabilities at amortised cost. It also includes net

interest on related derivatives at fair value through profit or loss, amounting to a net interest expense

of USD

405

million for 2023 and

USD

111

million for 2022, and a net interest income of USD

million for 2021.

Equinor Annual Report on Form 20-F 2023

106

11 Income

taxes

Accounting policies

Income tax

Income tax in the Consolidated statement of income comprises current income tax and effects of changes in deferred tax

positions.

Income tax is recognised in the Consolidated statement of income except when it relates to items

recognised in other comprehensive

income (OCI).

Current tax consists of the expected tax payable for the year and any adjustment to tax payable

for previous years. Uncertain tax

positions and potential tax exposures are analysed individually. The outcomes of tax disputes are mostly binary in nature, and in each

case the most likely amount for probable liabilities to be paid (including penalties) or assets to

be received (disputed tax positions for

which payment has already been made) is recognised within Current tax or Deferred tax

as appropriate.

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to

differences between the carrying

amounts of existing assets and liabilities and their respective tax bases, and on unused tax losses

and credits carried forward, subject

to the initial recognition exemption. A deferred tax asset is recognised only to the extent that it

is probable that future taxable income

will be available against which the asset can be utilised. For a deferred tax asset to be recognised

based on future taxable income,

convincing evidence is required, considering the existence of contracts, production of oil or gas in the

near future based on volumes of

expected reserves, observable prices in active markets, expected volatility of trading profits,

expected foreign currency rate

movements and similar facts and circumstances.

When an asset retirement obligation or a lease contract is initially reflected in the accounts, a deferred

tax liability and a corresponding

deferred tax asset are recognised simultaneously and accounted for in line with other deferred tax

items.

Equinor has adopted amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules (top-up tax) with effect from 1

January 2023. Equinor has applied the mandatory exception and does not recognise or disclose

information about deferred tax assets

and liabilities related to Pillar Two income taxes.

The mandatory exception applies retrospectively. However, since no new legislation to implement the top-up tax was enacted or

substantively enacted on 31 December 2022 in any jurisdiction in which Equinor operates,

and no related deferred tax was recognised

at that date, the retrospective application has no impact on the Consolidated financial statements.

Estimation uncertainty regarding income tax

Equinor incurs significant amounts of income taxes payable to various jurisdictions and may recognise

significant changes to deferred

tax assets and deferred tax liabilities. There may be uncertainties related to interpretations

of applicable tax laws and regulations

regarding amounts in Equinor’s tax returns, which are filed in a number of tax

regimes. For cases of uncertain tax treatments, it may

take several years to complete the discussions with relevant tax authorities or to reach resolutions

of the appropriate tax positions

through litigation.

The carrying values of income tax related assets and liabilities are based on Equinor's interpretations

of applicable laws, regulations

and relevant court decisions. The quality of these estimates, including the most likely outcomes

of uncertain tax treatments, is

dependent upon proper application of at times very complex sets of rules, the recognition of

changes in applicable rules and, in the

case of deferred tax assets, management's ability to project future earnings from activities that may apply loss carry

forward positions

against future income taxes. Climate-related matters and the transition to carbon-neutral

energy-consumption globally have increased

the uncertainty in determining key business assumptions used to assess the recoverability

of deferred tax assets through sufficient

future taxable income before tax losses expire.

-----------------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023

107

Significant components of income tax expense

Full year

(in USD million)

2023

2022

2021

Current income tax expense in respect of

current year

(24,028)

(52,124)

(21,271)

Prior period adjustments

(121)

(112)

(28)

Current income tax expense

(24,149)

(52,236)

(21,299)

Origination and reversal of temporary differences

(1,529)

(2,136)

(1,778)

Recognition / derecognition of previously (un)recognised

deferred tax assets

(137)

4,401

126

Change in tax regulations

Prior period adjustments

(169)

110

(60)

Deferred tax income/(expense)

(1,831)

2,375

(1,708)

Income tax

(25,980)

(49,861)

(23,007)

Changes to tax regimes

Pillar Two

On 24 November 2023 the Norwegian Ministry of Finance published a draft resolution on

the implementation of the OECD Pillar Two

Model Rules into Norwegian legislation. The rules are introducing a global minimum tax

%. The proposal was sanctioned in

January 2024 and the Norwegian Top Up Tax

Act (No: “Suppleringsskatteloven”) has entered into effect for the income year 2024.

The Pillar Two rules will be applicable to the Equinor group, but Equinor’s preliminary assessment is that we do not expect

any

significant economic impact from the rules.

Equinor Annual Report on Form 20-F 2023

108

Reconciliation of statutory tax rate to effective

tax rate

Full year

(in USD million)

2023

2022

2021

Income/(loss) before tax

37,884

78,604

31,583

Calculated income tax at statutory rate

(8,833)

(18,168)

(7,053)

Calculated Norwegian Petroleum tax

(17,226)

(36,952)

(17,619)

Tax effect uplift

160

259

914

Tax effect of permanent differences regarding divestments

417

Tax effect of permanent differences caused by functional currency different from tax currency

145

150

Tax effect of other permanent differences

453

403

228

Recognition / derecognition of previously (un)recognised deferred

tax assets

(137)

4,401

126

Change in unrecognised deferred tax assets

(29)

(34)

619

Change in tax regulations

Prior period adjustments

(290)

(3)

(88)

Other items including foreign currency effects

(169)

(327)

(378)

Income tax

(25,980)

(49,861)

(23,007)

Effective tax rate

68.6 %

63.4 %

72.8 %

The weighted average of statutory tax rates was

23.3

% in 2023,

23.1

% in 2022 and

22.3

% in 2021. The rates are influenced by

earnings composition between tax regimes with lower statutory tax rates and tax regimes with higher statutory

tax rates.

The Norwegian petroleum income is taxable at a tax rate of

71.8

% after deducting a calculated

% corporate tax.

As from 2023 the uplift deduction for investments on NCS has been abolished except for asset

investments that fall under the

temporary rules enacted under the Covid-19 pandemic. For investments with PUD submitted to

the authorities before 31

December 2022 the rules allow a direct deduction of the whole uplift in the year the capital expenditure is

incurred. In 2022 the

rate was

17.69

% and this rate was reduced to

12.4

% in 2023.

Equinor performs its

assessment on DTA

recognition based on sources

of income such

as the reversal

pattern of taxable

timing

differences and projections of taxable income and recognises the amount of deferred tax assets that is probable to be realised. In

2023 USD

137

million was

derecognised due

to an increase

in valuation

allowance mainly

related to Angola

and Canada,

compared

to a recognition of USD

4,401

million in 2022 mainly related to unused accumulated tax losses in the US.

Equinor Annual Report on Form 20-F 2023

109

Deferred tax assets and liabilities comprise

(in USD million)

Tax losses

carried

forward

Property,

plant and

equipment

and

intangible

assets

Asset

retirement

obligations

Lease

liabilities

Pensions

Derivatives

Other

Total

Deferred tax assets

8,575

514

7,816

1,298

747

446

1,495

20,892

Deferred tax liabilities

(28)

(26,042)

(2)

(6)

(300)

(26,378)

Net asset/(liability) at 31 December

2023

8,547

(25,528)

7,816

1,296

741

446

1,195

(5,485)

Deferred tax assets

8,105

694

7,356

1,306

694

1,131

1,348

20,634

Deferred tax liabilities

(28)

(23,356)

(3)

(12)

(3)

(411)

(23,813)

Net asset/(liability) at 31 December

2022

8,077

(22,662)

7,356

1,303

682

1,128

937

(3,179)

Changes in net deferred tax liability during

the year were as follows:

(in USD million)

2023

2022

2021

Net deferred tax liability at 1 January

3,179

7,655

6,250

Charged/(credited) to the Consolidated statement of

income

1,831

(2,375)

1,708

Charged/(credited) to Other comprehensive income

(66)

105

Acquisitions and disposals

981

(968)

Foreign currency translation effects and other effects

(440)

(1,239)

(374)

Net deferred tax liability at 31 December

5,485

3,179

7,655

Equinor Annual Report on Form 20-F 2023

110

Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a

legally enforceable right to offset current tax assets against current tax liabilities. After netting deferred tax assets

and liabilities by

fiscal entity and reclassification to Assets held for sale, deferred taxes are presented on the Consolidated

balance sheet as follows:

At 31 December

(in USD million)

2023

2022

Deferred tax assets

7,936

8,732

Deferred tax liabilities

13,345

11,996

Net deferred tax classified as held for sale

(76)

Deferred tax assets are recognised based on the expectation that sufficient taxable income will

be available through reversal of

taxable temporary differences or future taxable income. At year-end 2023, the deferred tax assets of USD

7,952

million were primarily

recognised in the US, the UK, Norway, Angola, Canada and Brazil. Of this amount, USD

965

million was recognised in entities which

have suffered a tax loss in either the current or the preceding period. The corresponding amounts for 2022, were USD

8,817

million

and USD

1,953

million, respectively. The tax losses will be utilised through reversal of taxable temporary differences and future

taxable income, mainly from production of oil and gas. Around

% of the tax losses carried forward and recognised as deferred tax

assets are expected to be fully utilised within

10 years

Unrecognised deferred tax assets

At 31 December

2023

2022

(in USD million)

Basis

Tax

Basis

Tax

Deductible temporary differences

2,555

1,030

2,558

968

Unused tax credits

185

129

Tax losses carried forward

3,944

947

3,458

930

Total unrecognised deferred tax assets

6,499

2,162

6,016

2,027

Approximately

% of the unrecognised carry forward tax losses can be carried forward indefinitely. The majority of the unrecognised

tax losses that cannot be carried forward indefinitely expire

after 2027

. The unrecognised tax credits expire from 2030, while the

unrecognised deductible temporary differences do not expire under the current tax legislation. Deferred tax assets

have not been

recognised in respect of these items because currently there is insufficient evidence to support that future taxable

profits will be

available to secure utilisation of the benefits.

At year-end 2023, unrecognised deferred tax assets in Angola and Canada represents USD

712

million and USD

415

million,

respectively, of the total unrecognised deferred tax assets of USD

2,162

million. Similar amounts for 2022 were USD

636

million in

Angola and USD

346

million in Canada of a total of USD

2,027

million. The remaining unrecognised deferred tax assets originate from

several different tax jurisdictions.

Equinor Annual Report on Form 20-F 2023

111

12 Property,

plant and equipment

Accounting policies

Property, plant and equipment

Property, plant and equipment is reflected at cost, less accumulated depreciation and impairment. The initial cost of an asset

comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation,

the initial estimate

of an asset retirement obligation, exploration costs transferred from intangible assets and, for

qualifying assets, borrowing costs.

Contingent consideration included in the acquisition of an asset or group of similar assets is

initially measured at its fair value, with

later changes in fair value other than due to the passage of time reflected in the book value

of the asset or group of assets, unless the

asset is impaired. Property, plant and equipment include costs relating to expenditures incurred under the terms of production sharing

agreements (PSAs) in certain countries, and which qualify for recognition as assets of Equinor. State-owned entities in the respective

countries, however, normally hold the legal title to such PSA-based property, plant and equipment.

Expenditure on major maintenance refits or repairs comprises the cost of replacement assets

or parts of assets, inspection costs and

overhaul costs. Inspection and overhaul costs, associated with regularly scheduled major maintenance

programmes planned and

carried out at recurring intervals exceeding one year, are capitalised and amortised over the period to the next scheduled inspection

and overhaul. All other maintenance costs are expensed as incurred.

Capitalised exploration and evaluation expenditures, development expenditure on the construction,

installation or completion of

infrastructure facilities such as platforms, pipelines and the drilling of production wells, and field-dedicated transport

systems for oil

and gas are capitalised as Producing oil and gas properties within Property, plant and equipment. Such capitalised costs, when

designed for significantly larger volumes than the reserves from already developed and producing

wells, are depreciated using the

unit of production method (UoP) based on proved reserves expected to be recovered from the

area during the concession or contract

period. Depreciation of production wells uses the UoP method based on proved developed

reserves, and capitalised acquisition costs

of proved properties are depreciated using the UoP method based on total proved reserves. In the

rare circumstances where the use

of proved reserves fails to provide an appropriate basis reflecting the pattern in which the

asset’s future economic benefits are

expected to be consumed, a more appropriate reserve estimate is used. Depreciation of other assets

and transport systems used by

several fields is calculated on the basis of their estimated useful lives, normally using the

straight-line method. Each part of an item of

property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. For

exploration and production assets, Equinor has established separate depreciation categories which

as a minimum distinguish

between platforms, pipelines and wells.

The estimated useful lives of property, plant and equipment are reviewed on an annual basis, and changes in useful lives are

accounted for prospectively. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on

derecognition of the asset is included in Other income or Operating expenses, respectively, in the period the item is derecognised.

Monetary or non-monetary grants from governments, when related to property, plant and equipment and considered reasonably

certain, are recognised in the Consolidated balance sheet as a deduction to the carrying

value of the asset and subsequently

recognised in the Consolidated statement of income over the life of the depreciable asset

as a reduced depreciation expense.

Research and development

Equinor undertakes research and development both on a funded basis for licence holders

and on an unfunded basis for projects at its

own risk, developing innovative technologies to create opportunities and enhance the value of current

and future assets. Expenses

relate both to in-house resources and the use of suppliers. Equinor's own share of the licence

holders' funding and the total costs of

the unfunded projects are considered for capitalisation under the applicable IFRS Accounting

Standard requirements. Subsequent to

initial recognition, any capitalised development costs are accounted for in the same manner

as Property, plant and equipment. Costs

not qualifying for capitalisation are expensed as incurred, see note 9 Auditor’s remuneration

and Research and development

expenditures for more details.

Estimation uncertainty regarding determining oil and gas reserves

Reserves quantities are, by definition, discovered, remaining, recoverable and economic. Recoverable oil and

gas quantities are

always uncertain. Estimating reserves is complex and based on a high degree of professional judgement

involving geological and

engineering assessments of in-place hydrocarbon volumes, the production, historical recovery and processing

yield factors and

installed plant operating capacity. The reliability of these estimates depends on both the quality and availability of the technical and

economic data and the efficiency of extracting and processing the hydrocarbons.

Estimation uncertainty; Proved oil and gas reserves

Proved oil and gas reserves may impact the carrying amounts of oil and gas producing assets,

as changes in the proved reserves, will

impact the unit of production rates used for depreciation and amortisation. Proved oil and

gas reserves are those quantities of oil and

gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty

to be economically producible

from a given date forward, from known reservoirs, and under existing economic conditions, operating

methods, and government

regulations. Unless evidence indicates that renewal is reasonably certain, estimates of proved reserves

only reflect the period before

Equinor Annual Report on Form 20-F 2023

112

the contracts providing the right to operate expire. For future development projects, proved reserves

estimates are included only

where there is a significant commitment to project funding and execution and when relevant governmental

and regulatory approvals

have been secured or are reasonably certain to be secured.

Proved reserves are divided into proved developed and proved undeveloped reserves. Proved developed

reserves are to be

recovered through existing wells with existing equipment and operating methods, or where the

cost of the required equipment is

relatively minor compared to the cost of a new well. Proved undeveloped reserves are to

be recovered from new wells on undrilled

acreage, or from existing wells where a relatively major capital expenditure is required. Undrilled

well locations can be classified as

having proved undeveloped reserves if a development plan is in place indicating that they are scheduled

to be drilled within five years

unless specific circumstances justify a longer time horizon. Specific circumstances are for instance

fields which have large up-front

investments in offshore infrastructure, such as many fields on the NCS, where drilling of wells is scheduled

to continue for much

longer than five years. For unconventional reservoirs where continued drilling of new wells is a major

part of the investments, such as

the US onshore assets, the proved reserves are always limited to proved well locations

scheduled to be drilled within five years.

Proved oil and gas reserves have been estimated by internal qualified professionals based on industry

standards and are governed by

the oil and gas rules and disclosure requirements in the U.S. Securities and Exchange Commission

(SEC) regulations S-K and S-X,

and the Financial Accounting Standards Board (FASB) requirements for supplemental oil and gas disclosures. The estimates have

been based on a 12-month average product price and on existing economic conditions and operating

methods as required, and

recovery of the estimated quantities have a high degree of certainty (at least a 90% probability).

An independent third party has

evaluated Equinor's proved reserves estimates, and the results of this evaluation do not differ materially from Equinor's

estimates.

Estimation uncertainty; Expected oil and gas reserves

Changes in the expected oil and gas reserves may materially impact the amounts of

asset retirement obligations, as a consequence

of timing of the removal activities. It will also impact value-in-use calculations for oil and gas assets,

possibly affecting impairment

testing and the recognition of deferred tax assets. Expected oil and gas reserves are the

estimated remaining, commercially

recoverable quantities, based on Equinor's judgement of future economic conditions, from projects in

operation or decided for

development. As per Equinor’s internal guidelines, expected reserves are

defined as the ‘forward looking mean reserves’ when based

on a stochastic prediction approach. In some cases, a deterministic prediction method is used, in which

case the expected reserves

are the deterministic base case or best estimate. Expected reserves are therefore typically larger

than proved reserves as defined by

the SEC, which are high confidence estimates with at least a 90% probability of recovery

when a probabilistic approach is used.

Expected oil and gas reserves have been estimated by internal qualified professionals based on industry

standards and classified in

accordance with the Norwegian resource classification system issued by the Norwegian Petroleum

Directorate.

-----------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023

113

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2023

1,343

171,948

8,285

562

10,815

6,633

199,586

Additions through business acquisition

1,121

339

370

1,923

Additions and transfers

113

7,286

3,196

1,087

11,761

Changes in asset retirement obligations

772

827

Disposals at cost

(64)

(3,567)

(446)

(29)

(30)

(634)

(4,771)

Assets reclassified to held for sale

(1)

(3,944)

(245)

(8)

(4,198)

Foreign currency translation effects

(2,705)

(133)

(64)

(36)

(2,937)

Cost at 31 December 2023

1,438

170,911

8,105

591

14,097

7,050

202,191

Accumulated depreciation and impairment at

1 January 2023

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Depreciation

(44)

(7,976)

(224)

(26)

(1,079)

(9,350)

Impairment

(2)

(844)

(323)

(18)

(1)

(1,188)

Reversal of impairment

288

290

Transfers

(11)

(1)

(2)

Accumulated depreciation and impairment

on disposed assets

3,355

442

634

4,533

Accumulated depreciation and impairment

assets classified as held for sale

3,176

3,183

Foreign currency translation effects

2,142

2,251

Accumulated depreciation and impairment at

31 December 2023

(1,188)

(131,325)

(6,780)

(337)

(117)

(3,623)

(143,369)

Carrying amount at 31 December 2023

250

39,585

1,325

254

13,980

3,427

58,822

Estimated useful lives (years)

3 - 20

UoP

15 - 30

10 - 33

1 - 20

Equinor Annual Report on Form 20-F 2023

114

(in USD million)

Machinery,

equipment and

transportation

equipment

Production

plants and oil

and gas

assets

Refining and

manufacturing

plants

Buildings

and land

Assets under

development

Right of use

assets

Total

Cost at 1 January 2022

1,335

183,358

8,481

596

12,614

5,850

212,234

Additions and transfers

9,390

378

(813)

1,319

10,332

Changes in asset retirement obligations

(4,756)

(48)

(4,805)

Disposals at cost

(9)

(3,487)

(20)

(5)

(347)

(3,865)

Foreign currency translation effects

(36)

(12,557)

(576)

(19)

(934)

(188)

(14,310)

Cost at 31 December 2022

1,343

171,948

8,285

562

10,815

6,633

199,586

Accumulated depreciation and impairment

at 1 January 2022

(1,188)

(137,763)

(7,926)

(320)

(344)

(2,619)

(150,159)

Depreciation

(52)

(7,643)

(160)

(33)

(969)

(8,856)

Impairment

(8)

(187)

(39)

(49)

(4)

(286)

Reversal of impairment

2,585

802

207

3,599

Transfers

(2)

(20)

(8)

Accumulated depreciation and impairment

on disposed assets

2,002

(4)

347

2,359

Foreign currency translation effects

9,571

562

10,264

Accumulated depreciation and impairment

at 31 December 2022

(1,203)

(131,455)

(6,763)

(338)

(135)

(3,194)

(143,088)

Carrying amount at 31 December 2022

140

40,493

1,522

224

10,679

3,439

56,498

Estimated useful lives (years)

3 - 20

UoP

15 - 20

10 - 33

1 - 20

Depreciation according to unit of production method.

Land is not depreciated

Buildings include leasehold improvements.

Depreciation linearly over contract period.

Right of use assets at 31 December 2023 mainly consist of Land and buildings USD

1,038

million, Vessels USD

1,578

million

and Drilling rigs USD

504

million.

See note 14 Impairments.

The carrying amount of assets transferred to Property plant and equipment from Intangible assets

in 2023 and 2022 amounted to

USD

1,280

million and USD

982

million, respectively.

For additions through business acquisition, see note 6 Acquisitions and disposals.

For assets reclassified to held for sale, see note 6 Acquisitions and disposals.

Equinor Annual Report on Form 20-F 2023

115

13 Intangible assets

Accounting policies

Intangible assets including goodwill

Intangible assets are stated at cost, less accumulated amortisation and impairment. Intangible

assets include acquisition cost for oil

and gas prospects, expenditures on the exploration for and evaluation of oil and natural gas

resources, goodwill, and other intangible

assets. Intangible assets relating to expenditures on the exploration for and evaluation of oil

and natural gas resources are not

amortised. When the decision to develop a particular area is made, related intangible

exploration and evaluation assets are

reclassified to Property, plant and equipment.

Goodwill acquired in a business combination is allocated to each cash generating unit (CGU), or

group of units, expected to benefit

from the combination’s synergies. Following initial recognition, goodwill is measured at cost less any accumulated impairment. In

acquisitions made on a post-tax basis according to the rules on the NCS, a provision for deferred

tax is reflected in the accounts

based on the difference between the acquisition cost and the tax depreciation basis transferred from the seller. The offsetting entry to

such deferred tax amounts is reflected as goodwill, which is allocated to the CGU or group

of CGUs on whose tax depreciation basis

the deferred tax has been computed.

Other intangible assets with a finite useful life, are depreciated over their useful life using the straight-line

method.

Oil and gas exploration, evaluation and development expenditures

Equinor uses the successful efforts method of accounting for oil and gas exploration costs. Expenditures to

acquire mineral interests

in oil and gas properties, including signature bonuses, expenditures to drill and equip exploratory wells

and evaluation expenditures

are capitalised within Intangible assets as Exploration expenditures and Acquisition costs - oil and gas

prospects. Geological and

geophysical costs and other exploration and evaluation expenditures are expensed as incurred.

Exploration wells that discover potentially economic quantities of oil and natural gas remain

capitalised as intangible assets during the

evaluation phase of the discovery. This evaluation is normally finalised within one year after well completion. If, following the

evaluation, the exploratory well has not found potentially commercial quantities of hydrocarbons,

the previously capitalised costs are

evaluated for derecognition or tested for impairment. Any derecognition or impairment is

classified as Exploration expenses in the

Consolidated statement of income.

Capitalised exploration and evaluation expenditures related to offshore wells that find proved reserves, are transferred

to Property,

plant and equipment at the time of sanctioning of the development project. The timing from evaluation

of a discovery until a project is

sanctioned could take several years depending on the location and maturity, including existing infrastructure, of the area of discovery,

whether a host government agreement is in place, the complexity of the project and the

financial robustness of the project. For

onshore wells where no sanction is required, the transfer to Property, plant and equipment occurs at the time when a well is ready for

production.

For exploration and evaluation asset acquisitions (farm-in arrangements) in which Equinor has decided to fund

a portion of the selling

partner's exploration and/or future development expenditures (carried interests), these expenditures are reflected

in the Consolidated

financial statements as and when the exploration and development work progresses.

Equinor reflects exploration and evaluation asset disposals (farm-out arrangements) on a historical cost basis with no gain

or loss

recognition. Consideration from the sale of an undeveloped part of an asset reduces the carrying

amount of the asset. If the

consideration exceeds the carrying amount of the asset, the excess amount is reflected in the

Consolidated statement of income

under Other income. Equal-valued exchanges (swaps) of exploration and evaluation assets with

only immaterial cash considerations

are accounted for at the carrying amounts of the assets given up with no gain or loss recognition.

Estimation uncertainty regarding exploration activities

Exploratory wells that have found reserves, but where classification of those reserves as

proved depends on whether a major capital

expenditure can be justified, will remain capitalised during the evaluation phase for the findings

on the exploration wells. Thereafter it

will be considered a trigger for impairment evaluation of the well if no development decision is planned

for the near future, and there

moreover are no concrete plans for future drilling in the licence. Judgements as to whether these

expenditures should remain

capitalised, be derecognised or impaired in the period may materially affect the carrying values of these assets and consequently, the

operating income for the period.

------------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023

116

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2023

1,599

2,035

1,380

528

5,542

Additions through business acquisition

348

446

799

Additions

410

360

210

989

Disposals at cost

(10)

(124)

(135)

Transfers

(961)

(319)

(4)

(1,280)

Expensed exploration expenditures previously capitalised

114

(61)

Foreign currency translation effects

Cost at 31 December 2023

1,169

2,036

1,733

1,072

6,010

Accumulated amortisation and impairment at 31 December

2023

(302)

Carrying amount at 31 December 2023

1,169

2,036

1,733

770

5,709

(in USD million)

Exploration

expenses

Acquisition

costs - oil and

gas prospects

Goodwill

Other

Total

Cost at 1 January 2022

1,958

2,670

1,467

722

6,816

Additions

227

324

Disposals at cost

(10)

(50)

(58)

Transfers

(227)

(516)

(239)

(982)

Expensed exploration expenditures previously capitalised

(283)

(59)

(342)

Impairment of goodwill

(3)

Foreign currency translation effects

(65)

(14)

(121)

(13)

(213)

Cost at 31 December 2022

1,599

2,035

1,380

528

5,542

Accumulated amortisation and impairment at 31 December

2022

(384)

Carrying amount at 31 December 2022

1,599

2,035

1,380

144

5,158

1) See note 14 Impairments.

2) Goodwill at 31 December 2023 mainly consists of technical goodwill related to business acquisitions in

2019, of which USD

533

million in the Exploration & Production Norway area and USD

440

million in the Marketing Midstream & Processing area.

The table below shows the aging of capitalised exploration expenditures.

(in USD million)

2023

2022

Less than one year

345

250

Between one and five years

458

340

More than five years

366

1,009

Total capitalised exploration expenditures

1,169

1,599

Equinor Annual Report on Form 20-F 2023

117

The table below shows the components of the exploration

expenses.

Full year

(in USD million)

2023

2022

2021

Exploration expenditures

1,275

1,087

1,027

Expensed exploration expenditures previously capitalised

(53)

342

171

Capitalised exploration

(427)

(224)

(194)

Exploration expenses

795

1,205

1,004

14 Impairments

Accounting policies

Impairment of property, plant and equipment, right-of-use assets, intangible assets including goodwill and equity accounted

investments

Equinor assesses individual assets or groups of assets for impairment whenever events or changes in

circumstances indicate that the

carrying value may not be recoverable. Assets are grouped into cash generating units (CGUs).

Normally, separate CGUs are

individual oil and gas fields or plants, or equity accounted investments. Each unconventional asset

play is considered a single CGU

when no cash inflows from parts of the play can be reliably identified as being largely independent

of the cash inflows from other parts

of the play. In impairment evaluations, the carrying amounts of CGUs are determined on a basis consistent with that of the

recoverable amount.

Unproved oil and gas properties are assessed for impairment when facts and circumstances

suggest that the carrying amount of the

asset or CGU to which the unproved properties belong may exceed its recoverable amount,

and at least once a year. Exploratory

wells that have found reserves, but where classification of those reserves as proved depends on

whether major capital expenditure

can be justified or where the economic viability of that major capital expenditure depends on the

successful completion of further

exploration work, will remain capitalised during the evaluation phase for the exploratory finds.

If, following evaluation, an exploratory

well has not found proved reserves, the previously capitalised costs are tested for impairment.

After the initial evaluation phase for a

well, it will be considered a trigger for impairment testing of a well if no development

decision is planned for the near future and there

is no firm plan for future drilling in the licence.

Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances

indicate that the carrying value

may be impaired. Impairment is determined by assessing the recoverable amount of the CGU,

or group of units, to which the goodwill

relates. When impairment testing goodwill originally recognised as an offsetting item to the computed deferred

tax provision in a post-

tax transaction on the NCS, the remaining amount of the deferred tax provision will factor

into the impairment valuation.

Impairment and reversals of impairment are presented in the Consolidated statement of income as Exploration

expenses or

Depreciation, amortisation and net impairment, on the basis of the nature of the impaired assets

as either exploration assets

(intangible exploration assets) or development and producing assets (property, plant and equipment and other intangible assets),

respectively.

Measurement

The recoverable amount applied in Equinor’s impairment assessments is normally estimated

value in use. Equinor may also apply the

assets’ fair value less cost of disposal as the recoverable amount when such a value is available,

reasonably reliable,

and based on a

recent and comparable transactions.

Value in use is determined using a discounted cash flow model. The estimated future cash flows are based on reasonable and

supportable assumptions and represent management's best estimates of the range of economic

conditions that will exist over the

remaining useful life of the assets, as set down in Equinor's most recently approved forecasts. Assumptions

and economic conditions

in establishing the forecasts are reviewed by management on a regular basis and updated at least annually. For assets and CGUs

with an expected useful life or timeline for production of expected oil and natural gas reserves

extending beyond five years, including

planned onshore production from shale assets with a long development and production horizon, the forecasts

reflect expected

production volumes, and the related cash flows include project or asset specific estimates reflecting

the relevant period. Such

estimates are established based on Equinor's principles and assumptions and are consistently applied.

The estimated future cash flows are adjusted for risks specific to the asset or CGU and discounted

using a real post-tax discount rate

which is based on Equinor's post-tax weighted average cost of capital (WACC). Country risk specific to a project is included as a

monetary adjustment to the projects’ cash flow. Equinor considers country risk primarily as an unsystematic risk. The cash flow is

Equinor Annual Report on Form 20-F 2023

118

adjusted for risk that influences the expected cash flow of a project and which is not part of the

project itself. The use of post-tax

discount rates in determining value in use does not result in a materially different determination

of the need for, or the amount of,

impairment that would be required if pre-tax discount rates had been used.

Impairment reversals

A previously recognised impairment is reversed only if there has been a change in the estimates

used to determine the asset’s

recoverable amount since the last impairment was recognised. Previously recognised impairments of goodwill

are not reversed in

future periods.

Estimation uncertainty regarding impairment

Evaluating whether an asset is impaired or if an impairment should be reversed requires a

high degree of judgement and may to a

large extent depend upon the selection of key assumptions about the future. In Equinor's

line of business, judgement is involved in

determining what constitutes a CGU. Development in production, infrastructure solutions, markets, product

pricing, management

actions and other factors may over time lead to changes in CGUs such as splitting one original

CGU into several CGUs.

The key assumptions used will bear the risk of change based on the inherent volatile nature of macro-economic

factors such as future

commodity prices and discount rates, and uncertainty in asset specific factors such as reserve

estimates and operational decisions

impacting the production profile or activity levels. Changes in foreign currency exchange rates will also affect value in use, especially

for assets on the NCS, where the functional currency is NOK. When estimating the recoverable

amount, the expected cash flow

approach is applied to reflect uncertainties in timing and amounts inherent in the assumptions used

in the estimated future cash flows.

For example, climate-related matters (see also Note 3

Climate change and energy transition

) are expected to have a pervasive effect on

the energy industry, affecting not only supply, demand and commodity prices, but also technology changes, increased emission-

related levies,

and other matters with mainly mid-term and long-term effects. These effects have been factored into the price

assumptions used for estimating future cash flows using probability-weighted scenario analyses.

The estimated future cash flows, reflecting Equinor’s, market participants’ and other external

sources’ assumptions about the future

and discounted to their present value, involve complexity. In order to establish relevant future cash flows, impairment testing requires

long-term assumptions to be made concerning a number of economic factors such as future market prices,

refinery margins, foreign

currency exchange rates and future output, discount rates, impact of the timing of tax incentive

regulations, and political and country

risk among others. Long-term assumptions for major economic factors are made at a group level, and

there is a high degree of

reasoned judgement involved in establishing these assumptions, in determining other relevant factors

such as forward price curves, in

estimating production outputs, and in determining the ultimate terminal value of an asset.

------------------------------------------------------------------------------------------------------------------------------

Net impairments/(reversal of impairments)

Full year

(in USD million)

2023

2022

2021

Property, plant and equipment

897

(3,313)

1,285

Intangible assets

154

Equity accounted investments

363

832

Total

net impairments/(reversals) including exploration expenses

1,321

(2,419)

1,439

The intangible assets line includes Goodwill, amortizable intangible assets, and certain acquisition

costs related to oil and

gas prospects.

Equinor Annual Report on Form 20-F 2023

119

For impairment purposes, the asset’s carrying amount is compared to its recoverable amount. The table below describes,

per area,

the Producing and development assets being impaired/(reversed),

net impairment/(reversal), and the carrying amount after

impairment.

At 31 December 2023

At 31 December 2022

At 31 December 2021

(in USD million)

Carrying

amount after

impairment

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment

Net

impairment

loss/

(reversal)

Carrying

amount after

impairment

Net

impairment

loss/

(reversal)

Exploration & Production Norway

887

588

3,201

(819)

5,379

(1,102)

Exploration & Production USA - onshore

546

(204)

1,979

Exploration & Production USA - offshore Gulf of Mexico

1,165

(290)

2,691

(882)

798

Europe and Asia

310

1,551

295

1,566

1,609

Marketing, Midstream & Processing

949

343

1,416

(895)

868

716

Renewables USA - offshore

134

300

Other

112

(7)

Total

3,247

1,261

9,435

(2,505)

10,611

1,282

Exploration & Production Norway

In 2023, the net impairment mainly relates to reduced expected reserves on a producing asset on the

Norwegian Continental Shelf.

2022, the net impairment reversal was mainly caused by increased price estimates and changed

gas export strategy. In 2021, the net

impairment reversal was mainly due to increased price estimates and an upward reserve revision.

Exploration & Production USA - onshore

In 2023, there were no impairments related to exploration and production assets USA – onshore.

In 2022, the impairment reversal

was caused by increased gas price assumptions, while in 2021 the net impairment was

caused by revision of reserves and sale of an

asset.

Exploration & Production USA - offshore Gulf of Mexico

In 2023, impairment reversals mainly relate to increased expected reserves on a producing asset. In 2022,

the impairment reversal

was caused by increased price assumptions and higher reserves estimates, while in 2021, the impairment

was due to a negative

reserve revision.

Exploration & Production International – Europe and Asia

In 2023, the impairment relates to the held for sale reclassification of Azerbaijan assets at the end

of the year (see note 6 Acquisitions

and disposals). In 2022, the net impairment was mainly caused by the decision to exit Russia. This

was to a large extent offset by a

reversal on Mariner in the UK mainly due to optimisation of the production profile and higher prices, supported

by a slight increase in

reserves estimates. In 2021, the net impairment was mainly caused by downward reserve revisions

partially offset by higher prices.

Marketing, Midstream & Processing

In 2023, net impairment mainly relates to expectations of stabilizing refinery margins at a lower level than

the margins consumed in

recent periods. In 2022 the net impairment reversal was mainly related to increased refinery margin assumptions,

while in 2021, the

impairment losses were caused by increased CO

fees and – quotas on a refinery and a classification to held for sale.

Renewables USA – Offshore

In 2023, Equinor’s offshore wind projects on the US North East Coast are facing increased

costs due to inflation and supply chain

constraints. On 12 October 2023, the New York State Public Service Commission (PSC) rejected price increase petitions related to

offtake agreements from several offshore and onshore wind farm developers, including Equinor’s joint ventures. As

a consequence,

an impairment of USD

300

million has been recognised. The recoverable amount of Equinor’s investments

in the offshore wind

projects on the US North East Coast has been established applying a fair value approach. These

investments are accounted for using

the equity method.

Accounting assumptions

There are inherent uncertainties in the assumptions, however the commodity price assumptions as well

as currency assumptions

reflect management’s best estimate of the price and currency development over the life of the Group’s assets based

on its view of

relevant current circumstances and the likely future development of such circumstances, including

energy demand development,

energy and climate change policies as well as the speed of the energy transition, population

and economic growth, geopolitical risks,

Equinor Annual Report on Form 20-F 2023

120

technology and cost development and other factors. Management’s best estimate also takes into consideration a

range of external

forecasts.

Equinor has performed a thorough and broad analysis of the expected development in drivers for

the different commodity markets and

exchange rates. Significant uncertainty exists regarding future commodity price development due to the

transition to a lower carbon

economy, future supply actions by OPEC+ and other factors. Such analysis resulted in changes in the long-term price assumptions

with effect from the second quarter of 2023. The main price assumptions applied in impairment and impairment

reversal assessments

are disclosed in the table below as price-points on price curves. Previous price-points applied from

the third quarter of 2022 and up to

and including the first quarter of 2023 are provided in brackets.

Year

Prices in real term 1)

2025

2030

2040

2050

Brent Blend (USD/bbl)

(78)

(73)

(68)

European gas (USD/MMBtu) - TTF

15.5

20.9

9.1

(9.9)

9.5

(9.4)

9.5

(9.4)

Henry Hub (USD/MMBtu)

3.6

(4.2)

4.3

(3.9)

4.3

(3.9)

4.3

(3.9)

Electricity Germany (EUR/MWh)

106

(122)

(74)

(60)

EU ETS (EUR/tonne)

(84)

105

(84)

128

(111)

150

(137)

1) Basis year 2023. The prices in the table are

price-points on price-curves.

Climate considerations are included in the impairment calculations directly by estimating the CO

taxes in the cash flows. Indirectly,

the expected effect of climate change is also included in the estimated commodity prices where supply and

demand are considered.

The prices also have effect on the estimated production profiles and economic cut-off of the projects. Furthermore, climate

considerations are a part of the investment decisions following Equinor’s strategy

and commitments to the energy transition.

Norway’s Climate Action Plan for the period 2021-2030 (Meld. St 13 (2020-2021)) which assumes

a gradually increased CO

tax (the

total of EU ETS + Norwegian CO

tax) in Norway to

2,000

NOK/tonne in 2030 is used for impairment calculations of Norwegian

upstream assets.

To reflect that carbon will have a cost for all our assets the current best estimate is considered to be EU ETS for countries outside EU

where carbon is not already subject to taxation or where Equinor has not established specific estimates.

The long-term NOK currency exchange rates are expected to be unchanged compared to previous

long-term assumptions. The

NOK/USD rate from 2026 and onwards is kept at

8.50

, the NOK/EUR at

10.00

. The USD/GBP rate is kept at

1.35

The base discount rate applied in value in use calculations is

5.0

% real after tax. The discount rate is derived from Equinor’s weighted

average cost of capital. For projects, mainly within the REN segment in periods with

fixed low risk income,

a lower discount rate will be

considered. A derived pre-tax discount rate is in the range of

% for E&P Norway,

% for E&P USA and

% for MMP depending on

the asset’s characteristics, such as specific tax treatments, cash flow profiles, and economic life. The pre-tax rates for 2022 were

102

% and

% respectively, in addition to

% for E&P International.

Sensitivities

Significant downward adjustments in Equinor's commodity price assumptions would result in impairment losses

on certain producing

and development assets, including intangible assets subject to impairment assessment, while

an opposite adjustment could lead to

impairment-reversals. Assuming a reasonably possible

% decline in commodity price forecasts over the assets' lifetime could result

in an illustrative impairment recognition of approximately USD

billion before tax effects. See note 3 Climate change and energy

transition for possible effect of using the prices in a 1.5ºC compatible Net Zero Emission by 2050 scenario

and the Announced

Pledges.

Similarly, for illustrative purposes, Equinor assessed the sensitivity of the discount rate used in the value in use calculations for

upstream producing assets and certain related intangible assets. It was determined an increase

in the discount rate from

5.0

% to

real after tax, in isolation, the impairment amount recognised could have a potential impact

of USD

billion before tax effects.

The illustrative impairment sensitivities above are based on a simplified method, which assumes

no changes to other input factors.

However, Equinor notes a price reduction of

% or those representing Net Zero Emission scenario and Announced Pledges

Scenario would likely impact business plans and other factors used in estimating an asset’s recoverable

amount. The correlated

changes reduce the stand-alone impact of the price sensitivities. Changes in such input factors would likely

include a reduction in the

cost level in the oil and gas industry and offsetting foreign currency effects, which has historically occurred following significant

changes in commodity prices.

Equinor Annual Report on Form 20-F 2023

121

15 Joint arrangements and associates

Accounting policies

Joint operations and similar arrangements, joint ventures and associates

A joint arrangement is a contractual arrangement whereby Equinor and other parties undertake an

activity subject to joint control, i.e.

when decisions about the relevant activities require the unanimous consent of the parties

sharing control. Such joint arrangements are

classified as either joint operations or joint ventures. In determining the appropriate classification, Equinor

considers the nature of

products and markets of the arrangements and whether the substance of the agreements is

that the parties involved have rights to

substantially all the arrangement's assets and obligations for the liabilities, or whether the parties involved have

rights to the net

assets of the arrangement. Equinor accounts for its share of assets, liabilities, revenues

and expenses in joint operations in

accordance with the principles applicable to those particular assets, liabilities, revenues and expenses.

Those of Equinor's exploration and production licence activities that are within the scope

of IFRS 11 Joint Arrangements have been

classified as joint operations. A considerable number of Equinor's unincorporated joint exploration

and production activities are

conducted through arrangements that are not jointly controlled, either because unanimous consent

is not required among all parties

involved, or no single group of parties has joint control over the activity. Licence activities where control can be achieved through

agreement between more than one combination of involved parties are considered to be

outside the scope of IFRS 11, and these

activities are accounted for on a pro-rata basis using Equinor's ownership share. Currently, Equinor uses IFRS 11 by analogy for all

such unincorporated licence arrangements whether these are in scope of IFRS 11 or not. Reference is made to note 5 Segments for

financial information related to Equinor’s participation in joint operations within

upstream activities.

Joint ventures, in which Equinor has rights to the net assets currently include the majority of

Equinor’s investments in the Renewables

(REN) operating and reporting segment. Equinor’s participation in joint arrangements

that are joint ventures and investments in

companies in which Equinor has neither control nor joint control but has the ability to

exercise significant influence over operating and

financial policies, are classified and accounted for as equity accounted investments.

Under the equity method, the investment is carried on the Consolidated balance sheet at cost

plus post-acquisition changes in

Equinor’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. Equinor also

reflects its share of the investment’s other comprehensive income (OCI) arisen after the acquisition. The part of an

equity accounted

investment’s dividend distribution exceeding the entity’s carrying amount in the Consolidated balance sheet is reflected as income

from equity accounted investments in the Consolidated statement of income. Equinor will subsequently

only reflect the share of net

profit in the investment that exceeds the dividend already reflected as income.

The Consolidated statement of income reflects Equinor’s share of the results

after tax of an equity accounted entity, adjusted to

account for depreciation, amortisation and any impairment of the equity accounted entity’s assets based on their

fair values at the

date of acquisition. In case of material differences in accounting policies, adjustments are made in order to

bring the accounts of the

equity accounted investment in line with Equinor’s accounting policies. Net income/loss from

equity accounted investments is

presented on a separate line as part of Total revenues and other income, as investments in and participation with significant influence

in other companies engaged in energy-related business activities is considered to be part of Equinor’s

main operating activities.

Acquisition of ownership shares in joint ventures and other equity accounted investments in which the

activity constitutes a business,

are accounted for in accordance with the requirements applicable to business combinations. Please

refer to note 6 Acquisitions and

disposals for more details on acquisitions.

Equinor as operator of joint operations and similar arrangements

Indirect operating expenses such as personnel expenses are accumulated in cost pools. These

costs are allocated on an hours’

incurred basis to business areas and Equinor-operated joint operations under IFRS 11 and to similar arrangements (licences) outside

the scope of IFRS 11. Costs allocated to the other partners' share of operated joint operations and similar arrangements are

reimbursed and only Equinor's share of the statement of income and balance sheet items related

to Equinor-operated joint operations

and similar arrangements are reflected in the Consolidated statement of income and the Consolidated

balance sheet.

-----------------------------------------------------------------------------------------------------------------------------

Equinor Annual Report on Form 20-F 2023

122

Joint ventures and other equity accounted investments

(in USD million)

2023

2022

Net investments at 1 January

2,758

2,686

Net income/(loss) from equity accounted investments

(1)

620

Impairment

(363)

(832)

Acquisitions and increase in capital

926

337

Dividend and other distributions

(286)

(210)

Other comprehensive income/(loss)

(10)

384

Divestments, derecognition and decrease in paid in

capital

(517)

(22)

Other

(205)

Net investments at 31 December

2,507

2,758

Mainly related to Renewable offshore wind industry in US, see also note 14 Impairments.

Mainly related to change in accounting treatment for Bandurria Sur (accounted for

by proportionally consolidation from 1

of April

2023).

Equity accounted investments consist of several investments, none above USD

0.5

billion. None of the investments are significant on

an individual basis. Voting rights correspond to ownership share.

16 Financial investments and financial receivables

Non-current financial investments

At 31 December

(in USD million)

2023

2022

Bonds

1,863

1,448

Listed equity securities

1,035

794

Non-listed equity securities

543

491

Financial investments

3,441

2,733

Bonds and equity securities mainly relate to investment portfolios held by Equinor’s

captive insurance company and other listed and

non-listed equities held for long-term strategic purposes, mainly accounted for using fair value through

profit or loss.

Equinor Annual Report on Form 20-F 2023

123

Non-current prepayments and financial receivables

At 31 December

(in USD million)

2023

2022

Interest-bearing financial receivables

341

1,658

Other interest-bearing receivables

Prepayments and other non-interest-bearing receivables

910

339

Prepayments and financial receivables

1,291

2,063

Prepayments and other non-interest-bearing receivables mainly relate to commodity sales contracts with

customers and lease

prepayments. Interest-bearing financial receivables primarily relate to loans to employees

and project financing of equity accounted

companies. Other interest-bearing receivables primarily relate to financial sublease and tax receivables.

Current financial investments

At 31 December

(in USD million)

2023

2022

Time deposits

17,846

12,373

Interest-bearing securities

11,378

17,504

Financial investments

29,224

29,876

At 31 December 2023, current financial investments

include USD

458

million in investment portfolios held by Equinor’s captive

insurance company which mainly are accounted for using fair value through profit or loss.

The corresponding balance at 31 December

2022 was USD

410

million.

For information about financial instruments by category, see note 28

Financial instruments and fair value measurement

Equinor Annual Report on Form 20-F 2023

124

17 Inventories

Accounting policies

Inventories

Commodity inventories not held for trading purposes are stated at the lower of cost and net realisable

value. Cost is determined by the

first-in first-out method and comprises direct purchase costs, cost of production, transportation, and manufacturing

expenses.

Commodity inventories held for trading purposes are measured at fair value less cost to sell (FVLCS), with

subsequent changes in fair

value recognised in the Consolidated statement of income as part of Revenues. These inventories

are categorised within level 2 of the

fair value hierarchy.

------------------------------------------------------------------------------------------------------------------------------

At 31 December

(in USD million)

2023

2022

Crude oil

2,051

2,115

Petroleum products

380

451

Natural gas

127

Commodity inventories at the lower of cost and net

realisable value

2,485

2,693

Natural gas held for trading purposes measured

at fair value

810

1,994

Other

520

517

Total inventories

3,814

5,205

Inventories held for trading purposes consist of natural gas storages held by Danske Commodities.

Equinor Annual Report on Form 20-F 2023

125

18 Trade and other receivables

At 31 December

(in USD million)

2023

2022

Trade receivables from contracts with customers

10,706

15,213

Other current receivables

1,774

992

Collateral receivables

2,186

3,468

Receivables from participation in joint operations and

similar arrangements

471

661

Receivables from equity accounted associated companies

and other related parties

1,056

1,276

Total financial trade and other receivables

16,193

21,611

Non-financial trade and other receivables

740

841

Trade and other receivables

16,933

22,452

1) Trade receivables from contracts with customers are shown

net of an immaterial provision for expected

losses.

2) Mainly related to cash paid as security for

a portion of Equinor's credit exposure.

For more information about the credit quality of Equinor's counterparties, see note 4 Financial

risk and capital management. For

currency sensitivities, see note 28 Financial instruments and fair value measurement. For further information

on receivables from

equity accounted associated companies and other related parties, see note 27 Related parties.

19 Cash and cash equivalents

Accounting policies

Cash and cash equivalents are accounted for at amortised cost and include cash in hand, bank

deposits, and short-term highly liquid

investments with original maturity of three months or less which are readily convertible to known

amounts of cash and subject to

insignificant risk of changes in fair value. Contractually mandatory deposits in escrow bank accounts are included

as restricted cash

and cash equivalents if the deposits are provided as part of the Group’s operating activities and therefore are deemed

as held for the

purpose of meeting short

‑

term cash commitments, and the deposits can be released from the escrow account without

undue

expenses.

At 31 December

(in USD million)

2023

2022

Cash at bank available

2,295

2,220

Time deposits

1,337

836

Money market funds

1,875

3,106

Interest-bearing securities

2,563

3,276

Restricted cash and cash equivalents, including collateral

deposits

1,572

6,140

Cash and cash equivalents

9,641

15,579

Restricted cash and cash equivalents at 31 December 2023 includes collateral deposits of USD

1,572

million related to trading

activities. Correspondingly, collateral deposits at 31 December 2022 were USD

6,128

million. Collateral deposits are related to certain

requirements of exchanges where Equinor is trading. The terms and conditions related to these requirements

are determined by the

respective exchanges.

Equinor Annual Report on Form 20-F 2023

126

20 Shareholders' equity,

capital distribution and earnings per share

Number of

NOK per value

NOK

USD

Share capital at 1 January 2023

3,175,470,159

2.50

7,938,675,397.50

1,142,036,265

Capital reduction

(172,365,554)

2.50

(430,913,885.00)

(41,519,325)

Share capital at 31 December 2023

3,003,104,605

2.50

7,507,761,512.50

1,100,516,940

Number of

NOK per value

Common Stock

Authorised and issued

3,003,104,605

2.50

7,507,761,512.50

Treasury shares

Share buy-back programme

(49,486,793)

2.50

(123,716,982.50)

Employees share saving plan

(8,884,668)

2.50

(22,211,670.00)

Total outstanding shares

2,944,733,144

2.50

7,361,832,860.00

Equinor ASA has only one class of shares and all shares have voting rights. The holders

of shares are entitled to receive dividends as

and when declared and are entitled to one vote per share at the annual general

meeting of the company.

Dividend

During 2023, dividend for the third and for the fourth quarter of 2022 and dividend for the

first and second quarter of 2023 were

settled. Dividend declared but not yet settled is presented as dividends payable in the Consolidated

balance sheet. The Consolidated

statement of changes in equity shows declared dividend in the period (retained earnings). Dividend

declared in 2023 relates

to the

fourth quarter of 2022 and to the first three quarters of 2023.

On 6 February 2024, the board of directors proposed to the annual general meeting

on 14 May 2024 an ordinary cash dividend for the

fourth quarter of 2023 of USD

0.35

per share and an extraordinary cash dividend of USD

0.35

per share. The Equinor share will trade

ex-dividend 15 May 2024 on Oslo Børs and for ADR holders on New York Stock Exchange. Record date will be 16 May 2024 and

payment date will be 28 May 2024.

At 31 December

(in USD million)

2023

2022

Dividends declared

10,783

7,549

USD per share or ADS

3.6000

2.4000

Dividends paid

10,906

5,380

USD per share or ADS

3.6000

1.6800

NOK per share

37.8522

16.4837

-------------------------------------------------------------------------------------------------------------------------------------

Accounting policies

Share buy-back

Where Equinor has either acquired own shares under a share buy-back programme

or has placed an irrevocable order with a third

party for Equinor shares to be acquired in the market, such shares are reflected

as a reduction in equity as treasury shares. Treasury

shares are not included in the weighted average number of ordinary shares outstanding in the

calculation of Earnings per share. The

remaining outstanding part of an irrevocable order to acquire shares is accrued for and classified as Trade, other payables and

provisions.

-------------------------------------------------------------------------------------------------------------------------------------

Share buy-back programme

Equinor Annual Report on Form 20-F 2023

127

The purpose of the share buy-back programme is to reduce the issued share capital

of the company. All shares repurchased as part

of the programme will be cancelled. According to an agreement between Equinor and the Norwegian

State, the Norwegian State will

participate in share buy-backs on a proportionate basis, ensuring that its ownership interest

in Equinor remains unchanged at

On 6 February 2024, the board of directors decided to announce a two-year share

buy-back programme for 2024-2025 of USD 10-12

billion in total, with USD 6 billion for 2024. The share buy-back programme will be subject to market

outlook and balance sheet

strength.

The first tranche of up to USD 1.2 billion of the 2024 share buy-back programme will commence on 8 February

and end no later than

5 April 2024. The first tranche of the 2024 share buy-back programme is based

on the authorisation from the annual general meeting

in May 2023, valid until the next annual general meeting, but no later than 30 June

2024. Commencement of new share buy-back

tranches after the first tranche in 2024 will be decided by the board of directors on a quarterly

basis in line with the company’s

dividend policy and will be subject to existing and new board authorisations for share buy-back from the

company’s annual general

meeting and agreement with the Norwegian State regarding share buy-back.

Number of shares

2023

2022

Share buy-back programme at 1 January

42,619,172

13,460,292

Purchase

63,748,254

56,290,671

Cancellation

(56,880,633)

(27,131,791)

Share buy-back programme at 31 December

49,486,793

42,619,172

Equity impact of share buy-back programmes

(in USD million)

2023

2022

First tranche

330

Second tranche

550

440

Third tranche

550

605

Fourth tranche

550

605

Total open market share

1,980

Norwegian state share

3,705

1,399

Total

5,685

3,380

1) Relates to second to fourth tranche of previous year programme and first tranche of current year

programme.

Based on the authorisation from the annual general meeting on 10 May 2023, the Board

of directors has, on a quarterly basis,

decided on share buy-back tranches. The 2023 programme was up to USD

billion, including shares to be redeemed from the

Norwegian State.

During 2023, four tranches of in total USD

billion were launched, including shares to be redeemed from the Norwegian State. The

acquisition of the fourth tranche in the open market was finalised in January 2024. As of

31 December 2023, USD

410

million of the

fourth tranche had been purchased in the open market, of which USD

388

million had been settled. Due to an irrevocable agreement

with a third party, the remaining order of USD

162

million is accrued for and classified as Trade, other payables and provisions.

In order to maintain the Norwegian State’s ownership share in Equinor, a proportionate share of the second, third and fourth tranche

of the 2022 programme as well as the first tranche of the 2023 programme was redeemed

and annulled after approval by the annual

general meeting on 10 May 2023. The liability to the Norwegian State of USD

3.705

billion (NOK

39.071

billion) was settled in June

2023.

Equinor Annual Report on Form 20-F 2023

128

Employees share saving plan

Number of shares

2023

2022

Share saving plan at 1 January

10,908,717

12,111,104

Purchase

2,204,207

2,127,172

Allocated to employees

(4,228,256)

(3,329,559)

Share saving plan at 31 December

8,884,668

10,908,717

In 2023 and 2022 treasury shares were purchased to employees participating in the share saving plan for USD

million and USD

million, respectively. For further information, see note 8 Salaries and personnel expenses.

Earnings per share

(in USD million)

2023

2022

Basic earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding

3,021

3,174

Basic earnings per share (in USD)

3.93

9.06

Diluted earnings per share

Net income (loss) attributable to shareholders of the company

11,885

28,746

Weighted average number of ordinary shares outstanding, diluted

3,027

3,183

Diluted earnings per share (in USD)

3.93

9.03

Basic and diluted earnings per share amounts are calculated by dividing the Net income (loss) for

the year attributable to shareholders

by relevant weighted average number of ordinary shares outstanding during the year. Shares purchased to employees participating in

the share saving plan is the only diluting element.

21 Finance debt

Non-current finance debt

Finance debt measured at amortised cost

Weighted average interest

rates in %

Carrying amount in USD

millions at 31 December

Fair value in USD

millions at 31 December

2023

2022

2023

2022

2023

2022

Unsecured bonds

United States Dollar (USD)

3.82

15,705

17,190

15,037

16,167

Euro (EUR)

1.51

1.42

6,633

7,465

6,177

6,782

Great Britain Pound (GBP)

6.08

1,747

1,652

2,013

1,836

Norwegian Kroner (NOK)

4.18

295

304

302

311

Total unsecured bonds

24,380

26,612

23,529

25,097

Unsecured loans

Brazilian real (BRL)

10.10

179

Japanese Yen (JPY)

4.30

Equinor Annual Report on Form 20-F 2023

129

Total unsecured loans

250

262

Total

24,630

26,688

23,791

25,187

Non-current finance debt due within one year

2,400

2,547

2,415

2,597

Non-current finance debt

22,230

24,141

21,376

22,590

Weighted average interest rates are calculated based on the contractual rates on the loans per currency at 31 December

and do

not include the effect of swap agreements.

Fair values are determined from external calculation models based on market observations

from various sources, classified at

level 2 in the fair value hierarchy. For more information regarding fair value hierarchy, see note 28 Financial instruments and fair

value measurement.

Unsecured bonds amounting to USD

15,705

million are denominated in USD and unsecured bonds denominated in other currencies

amounting to USD

7,848

million are swapped into USD. One bond denominated in EUR amounting to USD

827

million is not

swapped. The table does not include the effects of agreements entered into to swap the various currencies into

USD. For further

information see note 28 Financial instruments and fair value measurement.

Substantially all unsecured bonds and unsecured bank loan agreements contain provisions restricting future pledging

of assets to

secure borrowings without granting a similar secured status to the existing bondholders and lenders.

new bonds were issued in 2023.

Out of Equinor's total outstanding unsecured bond portfolio,

bond agreements contain provisions allowing Equinor to call the debt

prior to its final redemption at par or at certain specified premiums if there are changes to

the Norwegian tax laws. The carrying

amount of these agreements is USD

24,076

million at the 31 December 2023 closing currency exchange rate.

For more information about the revolving credit facility, maturity profile for undiscounted cash flows and interest rate risk management,

see note 4 Financial risk and capital management.

Non-current finance debt maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

4,683

4,794

Year 4 and 5

4,511

4,510

After 5 years

13,035

14,837

Total repayment of non-current finance debt

22,230

24,141

Weighted average maturity (years - including current portion)

Weighted average annual interest rate (% - including current portion)

3.41

3.29

Current finance debt

At 31 December

(in USD million)

2023

2022

Collateral liabilities

458

1,571

Non-current finance debt due within one year

2,400

2,547

Other including US Commercial paper programme

and bank overdraft

3,138

241

Total current finance debt

5,996

4,359

Weighted average interest rate (%)

3.77

2.22

Equinor Annual Report on Form 20-F 2023

130

Collateral liabilities and other current liabilities mainly relate to cash received as security

for a portion of Equinor's credit exposure and

outstanding amounts on US Commercial paper (CP) programme. Issuance on the CP programme

amounted to USD

1,895

million as

31 December 2023 and USD

227

million as of 31 December 2022.

Reconciliation of cash flows from financing activities

to finance line items in balance sheet

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

Additional

paid in

capital

Non-

controlling

interest

Dividend

payable

Lease

liabilities

Total

At 1 January 2023

24,140

4,359

(3,468)

3,041

2,808

3,667

Repayment of finance debt

(2,818)

Repayment of lease liabilities

(1,422)

Dividend paid

(10,906)

Share buy-back

(5,589)

Net current finance debt and other

finance activities

1,385

1,287

(69)

(10)

2,593

Net cash flow from financing activities

(2,818)

1,385

1,287

(5,658)

(10)

(10,906)

(1,422)

(18,142)

Transfer to current portion

147

(147)

Effect of exchange rate changes

321

(5)

(25)

Dividend declared

10,783

Debt in RIO Energy

437

New leases

1,379

Other changes

354

(1)

2,617

(36)

(29)

Net other changes

907

251

(6)

2,617

10,747

1,325

At 31 December 2023

22,230

5,995

(2,185)

2,649

3,570

(in USD million)

Non-current

finance debt

Current

finance

debt

Financial

receivable

Collaterals

Additional

paid in

capital

Non-

controlling

interest

Dividend

payable

Lease

liabilities

Total

At 1 January 2022

27,404

5,273

(1,577)

6,408

582

3,562

Repayment of finance debt

(250)

Repayment of lease liabilities

(1,366)

Dividend paid

(5,380)

Share buy-back

(3,315)

Net current finance debt and other

finance activities

(2,982)

(2,038)

(73)

(8)

(5,102)

Net cash flow from financing activities

(250)

(2,982)

(2,038)

(3,388)

(8)

(5,380)

(1,366)

(15,414)

Transfer to current portion

(2,297)

2,297

Effect of exchange rate changes

(710)

(78)

145

(3)

(149)

Dividend declared

7,549

New leases

1,644

Other changes

(7)

(151)

(2)

(24)

Equinor Annual Report on Form 20-F 2023

131

Net other changes

(3,014)

2,068

145

(5)

7,606

1,471

At 31 December 2022

24,140

4,359

(3,468)

3,041

2,808

3,667

Financial receivable collaterals are included in Trade and other receivables in the Consolidated balance sheet. See note 18

Trade and other receivables for more information.

Other changes in additional paid in capital have been moved to retained earnings.

See note 25 Leases for more information.

22 Pensions

Accounting policies

Equinor has pension plans for employees that either provide a defined pension benefit upon retirement or a pension

dependent on

defined contributions and related returns. A portion of the contributions are provided

for as notional contributions, for which the liability

increases with a promised notional return, set equal to the actual return of assets invested through the

ordinary defined contribution

plan. For defined benefit plans, the benefit to be received by employees generally

depends on many factors including length of

service, retirement date and future salary levels.

Equinor's proportionate share of multi-employer defined benefit plans is recognised as liabilities in the Consolidated balance

sheet as

sufficient information is considered available, and a reliable estimate of the obligation can be made.

The cost of pension benefit plans is expensed over the period that the employees render

services and become eligible to receive

benefits. The calculation is performed by an external actuary. Equinor's net obligation from defined benefit pension plans is calculated

separately for each plan by estimating the amount of future benefit that employees have earned

in return for their services in the

current and prior periods. That benefit is discounted to determine its present value, and the fair

value of any plan assets is deducted.

The recognition of a net surplus for the funded plan is based on the assumption that the net

assets represent a future value for

Equinor, either as a possible distribution to premium fund which can be used for future funding of new liabilities, or as disbursement of

equity in the pension fund.

Contributions to defined contribution schemes are recognised in the Consolidated statement of income

as pension costs in the period

in which the contribution amounts are earned by the employees.

Notional contribution plans, reported in the parent company Equinor ASA, are recognised as Pension

liabilities with the actual value of

the notional contributions and promised return at reporting date. Notional contributions are recognised

in the Consolidated statement

of income as periodic pension cost, while changes in fair value of the employees’ notional assets

are reflected in the Consolidated

statement of income under Net financial items.

Periodic pension cost is accumulated in cost pools and allocated to business areas and Equinor’s

operated joint operations (licences)

on an hours’ incurred basis and recognised in the Consolidated statement of income based on

the function of the cost.

------------------------------------------------------------------------------------------------------------------------------------

Pension plans in Equinor

The main pension plans for Equinor ASA and its most significant subsidiaries are defined contribution plans which includes certain

unfunded elements (notional contribution plans).

In addition, several employees and former employees of the Equinor Group is a

member of certain defined benefit plans. The benefit plan in Equinor ASA was closed in 2015

for new employees and for employees

with more than 15 years to regular retirement age.

Equinor's defined benefit plans are generally based on a minimum of 30 years of

service and 66% of the final salary level, including an assumed benefit from the Norwegian National Insurance Scheme.

The

Norwegian companies in the group are subject to, and complies with, the requirements of the Norwegian

Mandatory Company

Pensions Act.

The defined benefit plans in Norway are managed and financed through Equinor Pensjon (Equinor's

pension fund - hereafter Equinor

Pension). Equinor Pension is an independent pension fund that covers the employees in Equinor's

Norwegian companies. The

pension fund's assets are kept separate from the company's and group companies' assets. Equinor Pension

is supervised by the

Financial Supervisory Authority of Norway ("Finanstilsynet") and is licenced to operate as a pension

fund.

Equinor has more than one defined benefit plan, but the disclosure is made in total since the plans are not subject to materially

different risks. Pension plans outside Norway are not material and as such not disclosed separately. In this note pension costs are

Equinor Annual Report on Form 20-F 2023

132

presented on a gross basis before allocation to licence partners. In the Consolidated statement of income, the pension costs in

Equinor ASA are presented net of costs allocated to licence partners.

Equinor is also a member of a Norwegian national agreement-based early retirement plan (“AFP”), and the premium is calculated

based on the employees' income but limited to 7.1 times the basic amount in the National Insurance scheme (7.1 G).

The premium is

payable for all employees until age

. Pension from the AFP scheme will be paid from the AFP plan administrator

to employees for

their full lifetime.

Net pension cost

Total pension costs amount to USD

441

million in 2023, USD

458

million in 2022 and USD

488

million in 2021. In addition, interest

cost and interest income related to defined benefit plans are included in the Consolidated

statement of income within Net financial

items.

Changes in pension liabilities and plan assets

during the year

(in USD million)

2023

2022

Pension liabilities at 1 January

7,664

9,358

Current service cost

145

183

Interest cost

318

105

Actuarial (gains)/losses and currency effects

338

(1,785)

Changes in notional contribution liability and other

effects

Benefits paid

(284)

(258)

Losses/(gains) from curtailment, settlement or plan

amendment

(5)

Pension liabilities at 31 December

8,328

7,664

Fair value of plan assets at 1 January

5,213

6,404

Interest income

190

116

Return on plan assets (excluding interest income)

202

(622)

Company contributions

211

104

Benefits paid

(141)

(121)

Losses (gains) from curtailment, settlement or plan

amendment

113

(5)

Other effects

Foreign currency translation effects

(124)

(669)

Fair value of plan assets at 31 December

5,664

5,213

Net pension liability at 31 December

2,665

2,452

Represented by:

Asset recognised as non-current pension assets

(funded plan)

1,260

1,219

Liability recognised as non-current pension liabilities

(unfunded plans)

3,925

3,671

Pension liabilities specified by funded and unfunded

pension plans

8,328

7,664

Funded

4,404

3,994

Unfunded

3,925

3,670

Equinor recognised an actuarial loss from changes in financial assumptions in 2023.

changes in interest rate compared to year

end 2022, but other assumptions increased with

basis points. An actuarial gain was recognised in 2022.

Equinor Annual Report on Form 20-F 2023

133

Actuarial assumptions

Assumptions used to determine

benefit obligations in %

Rounded to the nearest quartile

2023

2022

Discount rate

3.75

Rate of compensation increase

4.00

3.50

Expected rate of pension increase

3.25

2.75

Expected increase of social security base amount (G-amount)

3.75

3.25

Weighted-average duration of the defined benefit obligation

13.25

13.50

The assumptions presented are for the Norwegian companies in Equinor which are members of

Equinor's pension fund. The defined

benefit plans of other subsidiaries are immaterial to the consolidated pension assets and liabilities.

Sensitivity analysis

The table below presents an estimate of the potential effects of changes in discount rate and expected rate of pension

increase for the

defined benefit plans. The following estimates are based on facts and circumstances as of 31 December

2023.

Discount rate

Expected rate of

pension increase

(in USD million)

0.50%

-0.50%

0.50%

-0.50%

Effect on:

Defined benefit obligation at 31 December 2023

(521)

587

494

(451)

The sensitivity of the financial results to each of the key assumptions has been estimated

based on the assumption that all other

factors would remain unchanged. The estimated effects on the financial result would differ from those that would actually

appear in the

Consolidated financial statements because the Consolidated financial statements would also reflect the

relationship between these

assumptions.

Equinor Annual Report on Form 20-F 2023

134

Pension assets

The plan assets related to the defined benefit plans were measured at fair value. Equinor Pension

invests in both financial assets and

real estate.

The table below presents the portfolio weighting as approved by the board of Equinor Pension for

2023. The portfolio weight during a

year will depend on the risk capacity.

Target portfolio

weight

(in %)

2023

2022

Equity securities

33.6

32.9

Interest bearing investments

61.7

60.5

Real estate

4.7

6.6

Total

100.0

In 2023,

100

% of the equity securities and

% of bonds had quoted market prices in an active market.

% of bonds and 100% of

money market instruments had market prices based on inputs other than quoted prices. If quoted

market prices are not available, fair

values are determined from external calculation models based on market observations from various

sources.

In 2022,

% of the equity securities and

% of bonds had quoted market prices in an active market.

% of the equity securities,

% of bonds and 100% of money market instruments had market prices based

on inputs other than quoted prices.

For definition of the various levels, see note 28 Financial instruments and fair value measurement.

Estimated company contributions to be made to Equinor Pension in 2024 is approximately USD

109

million.

23 Provisions and other liabilities

Accounting policies

Asset retirement obligations (ARO)

Provisions for asset retirement obligations (ARO) are recognised when Equinor has an obligation

(legal or constructive) to dismantle

and remove a facility or an item of property, plant and equipment and to restore the site on which it is located, and when a reliable

estimate of that liability can be made. Normally an obligation arises for a new facility, such as an oil and natural gas production or

transportation facility, upon construction or installation. An obligation may also arise during the period of operation of a facility through

a change in legislation or through a decision to terminate operations or be based on commitments

associated with Equinor's ongoing

use of pipeline transport systems where removal obligations rest with the volume shippers.

The amount recognised is the present value of the estimated future expenditures determined in accordance

with local conditions and

requirements. The cost is estimated based on current regulations and technology, considering relevant risks and uncertainties. The

discount rate used in the calculation of the ARO is a market-based risk-free rate based

on the applicable currency and time horizon of

the underlying cash flows. The provisions are classified under Provisions in the Consolidated

balance sheet.

When a provision for ARO is recognised, a corresponding amount is recognised as an increase of the related

asset within property,

plant and equipment and is subsequently depreciated over the useful life of the asset. Any

change in the present value of the

estimated expenditure is reflected as an adjustment to the provision and the corresponding adjustment to the carrying

value of the

property, plant and equipment. When a decrease in the ARO related to a producing asset exceeds the carrying amount of the asset,

the excess is recognised as a reduction of Depreciation, amortisation and net impairment

in the Consolidated statement of income.

When an asset has reached the end of its useful life, all subsequent changes to the ARO

are recognised as they occur in Operating

expenses in the Consolidated statement of income.

Removal provisions associated with Equinor's role as shipper of volumes through third party transport

systems are expensed as

incurred.

Estimation uncertainty regarding asset retirement obligations

Establishing the appropriate estimates for such obligations are based on historical knowledge combined with knowledge

of ongoing

technological developments, expectations about future regulatory and technological development and

involve the application of

judgement and an inherent risk of significant adjustments. The costs of decommissioning and removal

activities require revisions due

to changes in current regulations and technology while considering relevant risks and

uncertainties. Most of the removal activities are

Equinor Annual Report on Form 20-F 2023

135

many years into the future, and the removal technology and costs are constantly changing. The

speed of the transition to renewable

energy sources may also influence the production period, hence the timing of the removal activities.

The estimates include

assumptions of norms, rates and time required which can vary considerably depending on the

assumed removal complexity.

Moreover, changes in the discount rate and foreign currency exchange rates may impact the estimates significantly. As a result, the

initial recognition of ARO and subsequent adjustments involve the application of significant judgement.

---------------------------------------------------------------------------------------------------------------------------------

(in USD million)

Asset retirement

obligations

Other

provisions and

liabilities

Total

Non-current portion at 31 December 2022

11,569

4,064

15,633

Current portion at 31 December 2022 reported

as Trade, other payables and

provisions

165

494

659

Provisions and other liabilities at 31 December 2022

11,734

4,558

16,292

New or increased provisions and other liabilities

488

443

931

Change in estimates

845

870

Amounts charged against provisions and other liabilities

(126)

(301)

(427)

Effects of change in the discount rate

(276)

(263)

Reduction due to divestments

(403)

(306)

Accretion expenses

462

538

Reclassification, transfer and other

(174)

(1,387)

(1,561)

Foreign currency translation effects

(190)

(128)

Provisions and other liabilities at 31 December 2023

12,360

3,586

15,946

Non-current portion at 31 December 2023

12,171

3,133

15,304

Current portion at 31 December 2023 reported

as Trade, other payables and

provisions

190

452

642

Equinor Annual Report on Form 20-F 2023

136

Equinor's estimated asset retirement obligations (ARO) have increased by USD

626

million to USD

12,360

million at 31 December

2023 compared to year-end 2022. Changes in ARO are reflected within Property, plant and equipment and Provisions and other

liabilities in the Consolidated balance sheet.

In certain production sharing agreements (PSA), Equinor’s estimated share of asset retirement

obligation (ARO) is paid into an escrow

account over the producing life of the field. These payments are considered down-payments of the

liabilities and included in the line

item Amounts charged against provisions and other liabilities.

Claims and litigations mainly relate to expected payments for unresolved claims. The timing

and amounts of potential settlements in

respect of these claims are uncertain and dependent on various factors that are outside management's

control. For further information

on provisions and contingent liabilities, see note 26 Other commitments, contingent liabilities and contingent assets.

The timing of cash outflows of asset retirement obligations depends on the expected cease of production

at the various facilities.

Line item Reclassification, transfer and other includes USD

1,388

million related to SDFI liability. See note 27 Related parties for

further details.

Sensitivities with regards to discount rate on the total ARO portfolio

The discount rate sensitivity has been calculated by assuming a reasonably possible change of

1.3

percentage points.

An increase in the discount rate of

1.3

percentage points would reduce the ARO liability by USD

1,994

million. A corresponding

reduction would increase the liability by USD

2,507

million. See note 3 Climate change and energy transition for sensitivity with

regards to change in the removal year.

Expected timing of cash outflows

(in USD million)

Asset retirement

obligations

Other

provisions and

liabilities

Total

2024 - 2028

1,512

2,580

4,092

2029 - 2033

997

342

1,339

2034 - 2038

2,605

134

2,739

2039 - 2043

4,610

(42)

4,568

Thereafter

2,636

572

3,208

At 31 December 2023

12,360

3,586

15,946

24 Trade, other payables and provisions

At 31 December

(in USD million)

2023

2022

Trade payables

5,317

6,207

Non-trade payables and accrued expenses

2,210

2,688

Payables due to participation in joint operations and

similar arrangements

2,283

2,074

Payables to equity accounted associated companies

and other related parties

1,242

1,479

Total financial trade and other payables

11,052

12,449

Current portion of provisions and other non-financial

payables

819

903

Trade, other payables and provisions

11,870

13,352

Included in Current portion of provisions and other non-financial payables are certain provisions that

are further described in note 23

Provisions and other liabilities and in note 26 Other commitments, contingent liabilities and contingent

assets. For information

Equinor Annual Report on Form 20-F 2023

137

regarding currency sensitivities, see note 28 Financial instruments and fair value measurement.

For further information on payables to

equity accounted associated companies and other related parties, see note 27 Related parties.

25 Leases

Accounting policies

Leases

A lease is defined as a contract that conveys the right to control the use of an identified asset

for a period of time in exchange for

consideration. At the date at which the underlying asset is made available for Equinor, the present value of future lease payments

(including extension options considered reasonably certain to be exercised) is recognised as

a lease liability. The present value is

calculated using Equinor’s incremental borrowing rate. A corresponding right-of-use

(RoU) asset is recognised, including lease

payments and direct costs incurred at the commencement date. Lease payments are reflected as interest

expense and a reduction of

lease liabilities. The RoU assets are depreciated over the shorter of each contract’s term and the

assets’ useful life.

Short term leases (12 months or less) and leases of low value assets are expensed or (if appropriate)

capitalised as incurred,

depending on the activity in which the leased asset is used.

Many of Equinor’s lease contracts, such as rig and vessel leases, involve several additional

services and components, including

personnel cost, maintenance, drilling related activities, and other items. For a number of these

contracts, the additional services

represent a not inconsiderable portion of the total contract value. Non-lease components within lease contracts

are accounted for

separately for all underlying classes of assets and reflected in the relevant expense category or (if

appropriate) capitalised as

incurred, depending on the activity involved.

Accounting judgement regarding leases

In the oil and gas industry, where activity frequently is carried out through joint arrangements or similar arrangements, the application

of IFRS 16 Leases requires evaluations of whether the joint arrangement or its operator is the

lessee in each lease agreement and

consequently whether such contracts should be reflected gross (100%) in the operator’s

financial statements, or according to each

joint operation partner’s proportionate share of the lease.

In many cases where an operator is the sole signatory to a lease contract of an asset to

be used in the activities of a specific joint

operation, the operator does so implicitly or explicitly on behalf of the joint arrangement. In certain

jurisdictions, and importantly for

Equinor as this includes the Norwegian continental shelf (NCS), the concessions granted by the

authorities establish both a right and

an obligation for the operator to enter into necessary agreements in the name of the joint operations

(licences).

As is the customary norm in upstream activities operated through joint arrangements, the operator

will manage the lease, pay the

lessor, and subsequently re-bill the partners for their share of the lease costs. In each such instance, it is necessary to determine

whether the operator is the sole lessee in the external lease arrangement, and if

so, whether the billings to partners may represent

sub-leases, or whether it is in fact the joint arrangement which is the lessee, with each

participant accounting for its proportionate

share of the lease. Where all partners in a licence are considered to share the primary responsibility for lease

payments under a

contract, Equinor’s proportionate share of the related lease liability and RoU asset will

be recognised net by Equinor. When Equinor is

considered to have the primary responsibility for the full external lease payments, the lease liability is recognised

gross (100%).

--------------------------------------------------------------------------------------------------------------------------------

Equinor leases certain assets, notably drilling rigs, transportation vessels, storages and office facilities for operational activities.

Equinor is mostly a lessee, and the use of leases serves operational purposes rather than

as a tool for financing.

Information related to lease payments and lease

liabilities

(in USD million)

2023

2022

Lease liabilities at 1 January

3,667

3,562

New leases, including remeasurements and cancellations

1,379

1,644

Gross lease payments

(1,590)

(1,484)

Lease interest

138

Lease repayments

(1,451)

(1,389)

Foreign currency translation effects

(25)

(149)

Equinor Annual Report on Form 20-F 2023

138

Lease liabilities at 31 December

3,570

3,667

Current lease liabilities

1,279

1,258

Non-current lease liabilities

2,291

2,409

Equinor recognised revenues of USD

337

million in 2023 and USD

319

million in 2022 related to lease costs recovered from licence

partners related to lease contracts being recognised gross by Equinor.

Commitments relating to lease contracts which had not yet commenced at year-end are included

within Other commitments in note

26 Other commitments, contingent liabilities and contingent assets.

A maturity profile based on undiscounted contractual cash flows for lease liabilities is

disclosed in note 4 Financial risk and capital

management.

Non-current lease liabilities maturity profile

At 31 December

(in USD million)

2023

2022

Year 2 and 3

1,342

1,360

Year 4 and 5

470

483

After 5 years

478

566

Total repayment of non-current lease liabilities

2,291

2,409

The Right of use assets are included within the line item Property, plant and equipment in the Consolidated balance sheet. See also

note 12 Property, plant and equipment.

Equinor Annual Report on Form 20-F 2023

139

26 Other commitments, contingent liabilities and contingent

assets

Accounting policies

Estimation uncertainty regarding levies

Equinor’s global business activities are subject to taxation on income and indirect taxes in various jurisdictions around the

world. In these jurisdictions, governments can respond to global or local development, including climate related matters and

public fiscal balances, by issuing new laws or other regulations stipulating changes in income tax, value added tax, tax on

emissions, customs duties or other levies which may affect profitability and even the viability of Equinor’s business in that

jurisdiction. Equinor mitigates this risk by using local legal representatives and staying up to date with the legislation in the

jurisdictions where activities are carried out. Occasionally, legal disputes arise from difference in interpretations. Equinor’s

legal department, together with local legal representatives, estimate the outcome from such legal disputes based on first-hand

knowledge. Such estimates may differ from the actual results.

--------------------------------------------------------------------------------------------------------------------------------

Contractual commitments

Equinor had contractual commitments of USD

11,259

million as of 31 December 2023. The contractual commitments reflect Equinor's

proportional share and mainly comprise construction and acquisition of property, plant and equipment as well as committed

investments/funding or resources in equity accounted entities. It also includes Equinors’ estimated

expenditures related to

commitments to drill a certain number of wells, commitments which sometimes can be a prerequisite to be awarded oil and

gas

exploration and production licences.

At the end of 2023, Equinor was committed to participate in

wells, with an average ownership interest of approximately

Equinor's share of estimated expenditures to drill these wells amounts to USD

609

million. Additional wells that Equinor may become

committed to participating in depending on future discoveries in certain licences are not included in

these numbers.

Other long-term commitments

Equinor has entered into various long-term agreements for pipeline transportation as well as terminal use, processing,

storage and

entry/exit capacity commitments and commitments related to specific purchase agreements. The

agreements ensure the rights to the

capacity or volumes in question, but also impose on Equinor the obligation to pay for the agreed-upon

service or commodity,

irrespective of actual use. The contracts' terms vary, with durations of up to

2060

Take-or-pay contracts for the purchase of commodity quantities are only included in the table below if their contractually agreed

pricing is of a nature that will or may deviate from the obtainable market prices for the commodity

at the time of delivery.

Obligations payable by Equinor to entities accounted for in the Equinor group using the equity method

are included in the table below

with Equinor’s full proportionate share. For assets (such as pipelines) that are included in

the Equinor accounts through joint

operations or similar arrangements, and where consequently Equinor’s share of

assets, liabilities, income and expenses (capacity

costs) are reflected on a line-by-line basis in the Consolidated financial statements, the amounts in the table

include the net

commitment payable by Equinor (i.e. Equinor’s proportionate share of the

commitment less Equinor's ownership share in the

applicable entity).

The table below also includes USD

3,600

million as the non-lease components of lease agreements reflected in the accounts

according to IFRS 16, as well as leases not yet commenced.

For commenced leases, please refer to note 25 Leases.

Nominal minimum other long-term commitments at 31 December 2023:

(in USD million)

2024

2,659

2025

1,972

2026

1,615

2027

1,187

2028

1,010

Thereafter

6,775

Total other long-term commitments

15,218

Equinor Annual Report on Form 20-F 2023

140

Guarantees

Equinor has guaranteed for its proportionate share of some of our associates’

long-term bank debt, payment obligations under

contracts, and certain third-party obligations. The total amount guaranteed at year-end 2023 is USD

1,564

million. The book value of

the guarantees is immaterial.

Contingent liabilities and contingent assets

Claim from Petrofac regarding multiple variation order requests performed in Algeria (In Salah)

Petrofac International (UAE) LLC (“PIUL”) was awarded the EPC Contract to execute

the ISSF Project (the In Salah Southern Fields

Project in central Algeria). Following a suspension of activity in 2013, PIUL issued multiple

Variation Order Requests (“VoRs”) related

to the costs incurred for stand-by and remobilization costs. Several VoRs have been paid, but the settlement of the remaining has

been unsuccessful. PIUL initiated arbitration in August 2020 claiming an estimated amount

of USD

533

million, of which Equinor holds

31.85

% share. Equinor's maximum exposure amounts to USD

163

million. Equinor has provided for its best estimate in the matter.

Withholding tax dispute regarding remittances from Brazil to Norway

Remittances made from Brazil for services are normally subject to withholding income tax.

In 2012, Equinor’s subsidiaries in Brazil

filed a lawsuit to avoid paying this tax on remittances made to Equinor ASA and Equinor

Energy AS under the Double Tax Treaty

Brazil has with Norway. The lawsuit relates to services without transfer of technology on fields where Equinor is a partner. Court

proceedings through several levels in the legal system have been ongoing, and a final verdict has

not yet been reached. Withholding

tax has not been paid since 2014. Equinor's share of maximum exposure in the

case at year end 2023 is estimated at approximately

USD

159

million. Although Equinor continues to be of the view that all applicable tax

regulations have been applied in the case, recent

developments in similar litigation in Brazil have led to an updated evaluation of the likelihood of

loss, and Equinor has provided for the

best estimate in the case as income tax expense.

Suit for an annulment of Petrobras’ sale of the interest in BM-S-8 to Equinor

In March 2017, an individual connected to the Union of Oil Workers of Sergipe (Sindipetro) filed

a class action suit against Petrobras,

Equinor, and ANP - the Brazilian Regulatory Agency - to seek annulment of Petrobras’ sale of the interest and operatorship in BM-S-8

to Equinor, which was closed in November 2016 after approval by the partners and authorities. In February 2022, sentence in the

annulment case was issued at the first instance level, and Equinor won on all merits. The

case was appealed by the plaintiff and

Equinor has filed counter arguments. At the end of 2023, the acquired interest remains on Equinor’s

balance sheet, where the assets

related to phase 1 have been reclassified to property, plant and equipment and the assets related to phase 2 are presented as

intangible assets, all of which are part of the Exploration & Production International (E&P International)

segment.

Brazilian law creating uncertainty regarding certain tax incentives

Equinor is currently part in two legal matters in the state of Rio de Janeiro in Brazil

related to a law requiring taxpayers that benefits

from ICMS tax incentives (i.e. Repetro) to deposit

% of the savings made from such benefits into a state fund. Equinor is

of the

opinion that specific incentives so far relevant for the Roncador and Peregrino fields are

not in scope of the law, while the state of Rio

de Janeiro requires deposits to be paid with the addition of fines and interest. While legal

developments in 2023 have included

clarification from the Supreme Court that the law is constitutional, subject to a final ruling, Equinor’s

litigation in the matter continues,

mainly related to the law’s impact specifically for Repetro and other state tax incentives. Equinor believes that our

view in the matter

will ultimately be upheld by the courts, and no amounts have consequently been provided for in the

financial statements. At year-end

2023, the maximum exposure for Equinor in the matter has been estimated to be a total of USD

114

million.

KKD oil sands partnership

Canadian tax authorities have issued a notice of reassessment for 2014 for Equinor's Canadian

subsidiary which was party to

Equinor's divestment of

% of the KKD Oil Sands partnership at that time. The reassessment adjusts

the allocation of the proceeds

of disposition of certain Canadian resource properties from the partnership. Maximum exposure is

estimated to be approximately USD

380

million. Following an administrative appeal process with Canadian tax authorities, Equinor

commenced court proceedings in the

matter in 2023. While the court process may take several years, the reassessment will impact Equinor’s

tax paying position while the

proceedings are ongoing. Equinor is of the view that all applicable tax regulations have been

applied in the case and that Equinor has

a strong position. No amounts have consequently been provided for in the financial statements.

Other claims

During the normal course of its business, Equinor is involved in legal proceedings, and several other

unresolved claims are currently

outstanding. The ultimate liability or asset, in respect of such litigation and claims cannot

be determined at this time. Equinor has

provided in its Consolidated financial statements for probable liabilities related to litigation and

claims based on its best estimate.

Equinor does not expect that its financial position, results of operations or cash flows will be materially affected by the resolution

these legal proceedings. Equinor is actively pursuing the above disputes through the contractual

and legal means available in each

case, but the timing of the ultimate resolutions and related cash flows, if any, cannot at present be determined with sufficient reliability.

Equinor Annual Report on Form 20-F 2023

141

Provisions related to claims other than those related to income tax are reflected within note 23 Provisions

and other liabilities.

Uncertain income tax related liabilities are reflected as current tax payables or deferred tax

liabilities as appropriate, while uncertain

tax assets are reflected as current or deferred tax assets.

27 Related parties

Transactions with the Norwegian State

The Norwegian State is the majority shareholder of Equinor and also holds major

investments in other Norwegian companies. As of

31 December 2023, the Norwegian State had an ownership interest in Equinor of

67.0

% (excluding Folketrygdfondet, the Norwegian

national insurance fund, of

3.6

%). This ownership structure means that Equinor participates in transactions

with many parties that are

under a common ownership structure and therefore meet the definition of a related party.

For accounting policies and accounting judgement related to transactions with the Norwegian State,

see note 7 Total revenues and

other income. Total purchases of oil and natural gas liquids from the Norwegian State amounted to USD

10.1

billion, USD

12.6

billion

and USD

9.6

billion in 2023, 2022 and 2021, respectively. Payables to equity accounted associated companies and other related

parties specified in note 24 Trade and other payables are mostly related to these purchases, and is included in the

below table within

Trade, other payables and provisions. In addition, Equinor sells in its own name, but for the Norwegian State’s account and risk, the

Norwegian State’s gas production.

Trade and other receivables include a receivable from the Norwegian State under the Marketing Instruction in relation to the

state’s

(SDFI) participation in the gas sales activities of a foreign subsidiary of Equinor, estimated at USD

0.1

billion. At year-end 2022, the

corresponding estimated amount of USD

1.5

billion was classified as a non-current item and included within Prepayments and

financial receivables. The decrease is mainly related to reduced cost price for gas storage volume

and realised gains in the period. A

corresponding non-current liability of USD

0.1

billion has been recognised, representing SDFI's estimated interest in the gas sales

activities in the foreign subsidiary, and is included within Provisions and other liabilities in the below table. The estimated total non-

current liabilities to SDFI amount to USD

0.8

billion at 31 December 2023 (USD

2.1

billion at year end 2022).

In addition, the line-item Finance debt, which form part of the sub-total Total current liabilities, includes a liability of USD

0.9

billion to

SDFI due to cash received for collateral deposits requirement (

at year end 2022).

Transactions with the Norwegian State related to Equinor’s share buy-back programme are presented in

note 20 Shareholders’ equity,

capital distribution and earnings per share.

Other transactions

In its ordinary business operations, Equinor enters into contracts such as pipeline transport, gas

storage and processing of petroleum

products, with companies in which Equinor has ownership interests.

Gassled and certain other infrastructure assets are operated by Gassco AS, which is an

entity under common control by the

Norwegian Ministry of Energy. Gassco’s activities are performed on behalf of and for the risk and reward of pipeline and terminal

owners, and capacity payments flow through Gassco to the respective owners. Equinor payments that

flowed through Gassco in this

respect amounted to USD

1.0

billion in 2023, USD

1.2

billion and USD

1.0

billion in 2022 and 2021 respectively. The stated amounts

represent Equinor’s capacity payment net of Equinor’s own ownership

interests in Gassco operated infrastructure. In addition, Equinor

manages, in its own name, but for the Norwegian State’s account and risk, the Norwegian State’s share of the Gassco

costs. These

transactions are presented net.

Equinor has had transactions with other associated companies and joint ventures in the course

of its ordinary business, for which

amounts have not been disclosed due to materiality. In addition, Equinor has had transactions with joint operations and similar

arrangements where Equinor is operator. Indirect operating expenses incurred as operator are charged to the joint operation

or similar

arrangement based on the “no-gain/no-loss” principle.

Related party transactions with management are presented in note 8 Salaries and personnel expenses.

Related party transactions

due to Equinor’s share buy-back programme are presented in note 20 Shareholders’

equity, capital distribution and earnings per

share. Outstanding balances to related parties split on SDFI and other related parties are

presented in the below table. All related

party transactions are carried out on market terms.

Equinor Annual Report on Form 20-F 2023

142

At 31 December 2023

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

103

1,188

1,291

Trade and other receivables

1,007

15,877

16,933

Liabilities

Non-current provisions and other liabilities

850

14,454

15,304

Trade, other payables and provisions

1,195

10,628

11,870

Current finance debt

893

5,103

5,996

At 31 December 2022

Norwegian State's Direct

Financial Interests

Equity accounted

associated companies

and other related

parties

Third parties

Total amount

(in USD million)

Assets

Prepayments and financial receivables

1,461

541

2,063

Trade and other receivables

1,103

173

21,176

22,452

Liabilities

Non-current provisions and other liabilities

2,072

13,561

15,633

Trade, other payables and provisions

1,419

11,873

13,352

Current finance debt

4,359

28 Financial instruments and fair value measurement

Accounting policies

Financial assets

Financial assets are initially recognised at fair value when Equinor becomes a party to the contractual provisions

of the asset.

Short-term highly liquid investments with original maturity exceeding 3 months are classified as

current financial investments. Current

financial investments are primarily accounted for at amortised cost.

Trade receivables are carried at the original invoice amount less a provision for doubtful receivables which represent expected losses

computed on a probability-weighted basis.

A part of Equinor's financial investments is managed together as an investment portfolio

of Equinor's captive insurance company and

is held in order to comply with specific regulations for capital retention. The investment portfolio

is managed and evaluated on a fair

value basis in accordance with an investment strategy and is accounted for at fair value through

profit or loss.

Financial assets are presented as current if they contractually will expire or otherwise are expected

to be recovered within 12 months

after the balance sheet date, or if they are held for the purpose of being traded. Financial

assets and financial liabilities are shown

separately in the Consolidated balance sheet, unless Equinor has both a legal right and a demonstrable

intention to net settle certain

balances payable to and receivable from the same counterparty.

Gains and losses arising on the sale, settlement or cancellation of financial assets are recognised within

Net financial items.

Financial liabilities

Financial liabilities are initially recognised at fair value when Equinor becomes a party to

the contractual provisions of the liability. The

subsequent measurement of financial liabilities is either as financial liabilities at fair value through

profit or loss or financial liabilities

measured at amortised cost using the effective interest method, depending on classification. The latter

applies to Equinor's non-

current bank loans and bonds.

Equinor Annual Report on Form 20-F 2023

143

Financial liabilities are presented as current if the liability is expected to be settled as

part of Equinor’s normal operating cycle, the

liability is due to be settled within 12 months after the balance sheet date, Equinor

does not have the right to defer settlement of the

liability more than 12 months after the balance sheet date, or if the liabilities are held for the

purpose of being traded.

Gains and losses arising on the repurchase, settlement or cancellation of liabilities are recognised within Net

financial items.

Derivative financial instruments

Equinor uses derivative financial instruments to manage certain exposures to fluctuations in foreign

currency exchange rates, interest

rates and commodity prices. Such derivative financial instruments are initially recognised at

fair value on the date on which a

derivative contract is entered into and are subsequently remeasured at fair value through profit

and loss. The impact of commodity-

based derivative financial instruments is recognised in the Consolidated statement of income as part of Revenues,

as such derivative

instruments are related to sales contracts or revenue-related risk management for all significant purposes. The impact

of other

derivative financial instruments is reflected under Net financial items.

Derivatives are carried as assets when the fair value is positive and as liabilities when

the fair value is negative. Derivative assets or

liabilities expected to be settled, or with the legal right to be settled more than 12 months after

the balance sheet date, are classified

as non-current. Derivative financial instruments held for the purpose of being traded are however

always classified as current.

Contracts to buy or sell a non-financial item that can be settled net in cash or another

financial instrument are accounted for as

financial instruments. However, contracts that are entered into and continue to be held for the purpose of the receipt or delivery of a

non-financial item in accordance with Equinor's expected purchase, sale or usage requirements,

also referred to as own-use, are not

accounted for as financial instruments. Such sales and purchases of physical commodity

volumes and power are reflected in the

Consolidated statement of income as Revenue from contracts with customers and Purchases [net of inventory

variation], respectively.

This is applicable to a significant number of contracts for the purchase or sale of crude oil and

natural gas, as well as for some

contracts for the purchase or sale of power.

For contracts to sell a non-financial item that can be settled net in cash, but which ultimately

are physically settled despite not

qualifying as own use prior to settlement, the changes in fair value are included in Gain/loss on

commodity derivatives. When these

derivatives are physically settled, the previously recognised unrealised gain/loss is included

in Physically settled commodity

derivatives. Both these elements are included as part of Revenues. The physical deliveries made

through such contracts are included

in Revenue from contracts with customers at contract price.

Derivatives embedded in host contracts which are not financial assets within the scope

of IFRS 9 are recognised as separate

derivatives and are reflected at fair value with subsequent changes through profit and

loss, when their risks and economic

characteristics are not closely related to those of the host contracts, and the host contracts are not carried

at fair value. Where there is

an active market for a commodity or other non-financial item referenced in a purchase or sale contract,

a pricing formula will, for

instance, be considered to be closely related to the host purchase or sales contract

if the price formula is based on the active market

in question. A price formula with indexation to other markets or products will however result

in the recognition of a separate derivative.

In Equinor, this mainly relates to certain natural gas sales contracts where the pricing formula references power.

--------------------------------------------------------------------------------------------------------------------------------------

Financial instruments by category

The following tables present Equinor's classes of financial instruments and their carrying amounts by the categories

as they are

defined in IFRS 9 Financial Instruments. For financial investments, the difference between measurement as

defined by IFRS 9

categories and measurement at fair value is immaterial. For trade and other receivables and payables,

and cash and cash

equivalents, the carrying amounts are considered a reasonable approximation of fair value. See note 21 Finance

debt for fair value

information of non-current bonds and bank loans.

At 31 December 2023

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

559

Non-current financial investments

3,366

3,441

Prepayments and financial receivables

341

950

1,291

Trade and other receivables

16,193

740

16,933

Current derivative financial instruments

1,378

Equinor Annual Report on Form 20-F 2023

144

Current financial investments

28,822

402

29,224

Cash and cash equivalents

7,767

1,875

9,641

Total

53,198

7,580

1,690

62,467

At 31 December 2022

Fair value

through profit

or loss

Non-financial

assets

Total carrying

amount

(in USD million)

Note

Amortised cost

Assets

Non-current derivative financial instruments

691

Non-current financial investments

117

2,616

2,733

Prepayments and financial receivables

1,658

404

2,063

Trade and other receivables

21,611

841

22,452

Current derivative financial instruments

4,039

Current financial investments

29,577

300

29,876

Cash and cash equivalents

12,473

3,106

15,579

Total

65,436

10,752

1,245

77,433

Equinor Annual Report on Form 20-F 2023

145

At 31 December 2023

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

22,230

Non-current derivative financial instruments

1,795

Trade, other payables and provisions

11,052

819

11,870

Current finance debt

5,996

Dividend payable

2,649

Current derivative financial instruments

1,619

Total

41,927

3,414

819

46,159

At 31 December 2022

Amortised

cost

Fair value

through

profit or loss

Non-financial

liabilities

Total

carrying

amount

(in USD million)

Note

Liabilities

Non-current finance debt

24,141

Non-current derivative financial instruments

2,376

Trade, other payables and provisions

12,449

903

13,352

Current finance debt

4,359

Dividend payable

2,808

Current derivative financial instruments

4,106

Total

43,757

6,482

903

51,142

Equinor Annual Report on Form 20-F 2023

146

Measurement of fair values

Quoted prices in active markets represent the best evidence of fair value and are used by Equinor

in determining the fair values of

assets and liabilities to the extent possible. Financial instruments quoted in active markets will

typically include financial instruments

with quoted market prices obtained from the relevant exchanges or clearing houses. The fair

values of quoted financial assets,

financial liabilities and derivative instruments are determined by reference to mid-market prices, at the

close of business on the

balance sheet date.

Where there is no active market, fair value is determined using valuation techniques. These include

using recent arm's-length market

transactions, reference to other instruments that are substantially the same, discounted cash flow

analysis, and pricing models and

related internal assumptions. In the valuation techniques, Equinor also takes into consideration

the counterparty and its own credit

risk. This is either reflected in the discount rate used or through direct adjustments to the calculated

cash flows. Consequently, where

Equinor reflects elements of long-term physical delivery commodity contracts at fair value, such fair value estimates to

the extent

possible are based on quoted forward prices in the market and underlying indexes in

the contracts, as well as assumptions of forward

prices and margins where observable market prices are not available. Similarly, the fair values of interest and currency swaps are

estimated based on relevant quotes from active markets, quotes of comparable instruments, and

other appropriate valuation

techniques.

Fair value hierarchy

The following table summarises each class of financial instruments which are recognised in the

Consolidated balance sheet at fair

value, split by Equinor's basis for fair value measurement.

(in USD million)

Non-current

financial

investments

Non-current

derivative

financial

instruments

- assets

Current

financial

investments

Current

derivative

financial

instruments

- assets

Cash

equivalents

Non-current

derivative

financial

instruments

- liabilities

Current

derivative

financial

instruments

- liabilities

Net fair

value

At 31 December 2023

Level 1

1,294

1,300

Level 2

1,528

104

402

1,195

1,875

(1,754)

(1,577)

1,773

Level 3

543

455

177

(42)

(41)

1,092

Total fair value

3,366

559

402

1,378

1,875

(1,795)

(1,619)

4,166

At 31 December 2022

Level 1

903

(60)

868

Level 2

1,222

300

3,722

3,106

(2,352)

(3,952)

2,143

Level 3

491

594

292

(24)

(94)

1,259

Total fair value

2,616

691

300

4,039

3,106

(2,376)

(4,106)

4,270

Level 1, fair value based on prices quoted in an active market for identical assets or liabilities,

includes financial instruments actively

traded and for which the values recognized in the Consolidated balance sheet are determined based

on observable prices on identical

instruments. For Equinor this category will, in most cases, only be relevant for investments in

listed equity securities and government

bonds.

Level 2, fair value based on inputs other than quoted prices included within level 1, which are derived

from observable market

transactions, includes Equinor's non-standardised contracts for which fair values are determined on the basis

of price inputs from

observable market transactions. This will typically be when Equinor uses forward prices

on crude oil, natural gas, interest rates and

foreign currency exchange rates as inputs to the valuation models to determine the fair value

of it derivative financial instruments.

Level 3, fair value based on unobservable inputs, includes financial instruments for which fair

values are determined on the basis of

input and assumptions that are not from observable market transactions. The fair

values presented in this category are mainly based

on internal assumptions. The internal assumptions are only used in the absence of quoted

prices from an active market or other

observable price inputs for the financial instruments subject to the valuation.

The fair value of certain earn-out agreements and embedded derivative contracts are determined

by the use of valuation techniques

with price inputs from observable market transactions as well as internally generated price assumptions

and volume profiles. The

discount rate used in the valuation is a risk-free rate based on the applicable currency and time horizon

of the underlying cash flows

adjusted for a credit premium to reflect either Equinor's credit premium, if the value is a liability, or an estimated counterparty credit

Equinor Annual Report on Form 20-F 2023

147

premium if the value is an asset. In addition, a risk premium for risk elements not adjusted for

in the cash flow may be included when

applicable. The fair values of these derivative financial instruments have been classified in their

entirety in the third category within

current derivative financial instruments and non-current derivative financial instruments. Another reasonable

assumption, that could

have been applied when determining the fair value of these contracts, would be to extrapolate

the last observable forward prices with

inflation. If Equinor had applied this assumption, the fair value of the contracts included would

have increased by approximately USD

0.3

billion at end of 2023, while at end of 2022 the increase in fair value was approximately

USD

0.5

billion.

During 2023 the financial instruments within level 3 have had a net decrease in fair value of USD

167

million, of which a loss of USD

191

million was recognised in the Consolidated statement of income, mainly due to

changes in fair value of certain embedded

derivatives and earn-out agreements. During 2022, the same financial instruments had a net increase in fair

value of USD

416

million,

of which a gain of USD

370

million was recognised in the Consolidated statement of income.

29 Subsequent events

Swap of US Offshore Wind assets

In January 2024, Equinor entered into a swap agreement with bp. Equinor will acquire

bp’s

% share and take full ownership of

Empire Offshore Wind Holdings LLC, including the Empire Wind lease and projects, while bp will acquire Equinor’s

% share and

take full ownership of Beacon Wind Holdings LLC, including the Beacon Wind lease

and projects. It is anticipated that Equinor will

consolidate Empire Wind and derecognise its

% share of Beacon Wind in the first quarter of 2024. Equinor will also acquire bp's

% interest in the South Brooklyn Marine Terminal (SBMT) lease. The transaction, pending regulatory approvals, is anticipated to be

cash neutral, with the exception of standard cash and working capital settlements and will be recognised

in the REN segment.

EQUINOR ASA [EQNR] Filings

EQUINOR ASA [STOHF] Filings